__________ Is a Statistic That Evaluates a Customer's Creditworthiness and Ability

question 20

Multiple Choice

__________ is a statistic that evaluates a customer's creditworthiness and ability to repay a loan.

• A) Credit score
• B) Customer score
• C) Going concern
• D) Loan repayment score

---

Definitions:

Contribution Margin

The amount of revenue remaining after subtracting the variable costs of producing a product, serving as an indicator of the product's profitability.

Variable Cost

Costs that change directly in proportion to changes in the volume of production or sales, such as raw materials and direct labor.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Machine Hour

A measurement of production time, counting one hour of operation of a machine or a piece of equipment for manufacturing purposes.