A Variable Rate Mortgage Means

question 94

Multiple Choice

A variable rate mortgage means:

• A)The interest rate is not fixed
• B)The interest rate is fixed for five years
• C)The rate is not subject to change
• D)Larger monthly payments than a fixed rate
• E)None of these

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of resources.

Overhead Cost Allocated

Expenses related to the running of a business that are spread out across different departments or products.

Activity Rate

A rate used in activity-based costing to assign costs to activities based on their use of resources.

Activity Cost Pool

Refers to a grouping of all costs related to a specific activity used in activity-based costing to allocate overhead costs more accurately to products or services.