Which of the Following Is the Main Objective of FTL

question 8

Multiple Choice

Which of the following is the main objective of FTL legislation?

• A) More effective advance disclosure of settlement costs
• B) More informative disclosure of the cost of credit
• C) Elimination of kickbacks and unearned fees
• D) A reduction in the amount of escrow placed in accounts for homeowners

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Definitions:

Direct Material Cost

The expense of basic materials and parts directly utilized in manufacturing a product.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.

Opportunity Cost

The cost of forgone alternatives when one option is chosen over another.

Administrative Expense

Costs related to the general operation and administration of a business, including salaries of executive personnel, office supplies, and utilities.