Janet Kennedy Has Received a Letter in the Mail from BISA

question 54

Multiple Choice

Janet Kennedy has received a letter in the mail from BISA International,a credit card firm.The letter describes the card as follows:??"This card is yours for only a small annual fee that is billed to your account.There is an annual percentage rate finance charge of 16.5%.There may be other charges for some transactions.There are no late fees,but there will be a charge for going over your credit limit."??Which of the following statements is true?

• A)The letter includes all the necessary disclosures for credit card solicitation under Regulation Z.
• B)The finance charge is usurious.
• C)The letter is missing several items of disclosure required under Regulation Z for credit card solicitation.
• D)none of the above

Analyze the effect of changes in activity level on costs and per unit calculations.

Differentiate between period costs and product costs.

Determine manufacturing overhead and its components.

Calculate direct costs and prime costs in manufacturing and service departments.

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Definitions:

Assumptions

Premises or conditions accepted as true without proof, used as the basis for reasoning, discussion, or calculation.

Simplify

The process of making something less complex or easier to understand by reducing it to its basic components.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion drawing.

Circular-flow Diagram

A model that illustrates how goods, services, and money move through an economy, depicting the interactions between households and businesses.