If You Default on Your Automobile Loan,most Automobile Financing Agreements

question 125

Multiple Choice

If you default on your automobile loan,most automobile financing agreements:

• A)require an advance notice be sent to you before your car is repossessed.
• B)permit your creditor to repossess your car at any time without notice.
• C)permit the federal consumer credit laws to protect your car from being repossessed.
• D)allow you to not pay the full balance due on your automobile loan.
• E)allow you to pay fifty percent of the balance due on your automobile loan.

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Definitions:

Standard Costs

The predetermined expenses for the production of a product or operation of a service, used as a baseline to measure performance.

Direct Labor Wage Variance

The difference between the expected cost of direct labor for production and the actual cost incurred.

Direct Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.