A Lender Would Be More Likely to Request an Environmental

question 19

True/False

A lender would be more likely to request an environmental assessment than an environmental audit before lending funds to a borrower intent on acquiring derelict lands that were once a large railway yard.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead expected, based on the actual activity level.

Variable Overhead

Indirect, fluctuating costs that change with the level of production or organizational activity.

Direct Labor-hours

The aggregate amount of time spent by staff directly participating in the production process or in service provision.

Variable Overhead Efficiency Variance

A financial metric indicating the difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the efficient use of variable inputs.