Which of the Following Features Does Not Accurately Describe a Line

question 41

Multiple Choice

Which of the following features does not accurately describe a line of credit?

• A)A loan approved before the money is actually needed
• B)Funds available immediately when needed once the loan is preapproved
• C)Obtainable from a credit union,savings and loan association,or bank
• D)It has a ceiling
• E)Long-term loan

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage; it measures how efficiently a company uses its resources to make products.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a selected activity base such as machine hours or labor hours.

Machine-Hours

A unit of measure that represents the operational time of a machine, often used to allocate manufacturing overhead costs to products.

Unused Capacity

The available production or service facility that is not being used or is underutilized.