Borrowers Often Seek Revolving Lines of Credit That They Can

question 29

True/False

Borrowers often seek revolving lines of credit that they can draw upon on a daily basis to run their business.

---

Definitions:

Assembly

The process of putting together various components or pieces to build a finished product.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the cost of manufacturing overhead for a specific activity base.

Machine-Hours

An indicator of the time spent in production, calculating the duration in hours that machinery is active during the manufacturing cycle.

Direct Labor-Hours

The accumulated hours spent by workers directly involved in manufacturing activities.