Handyman Hardware, a Small Community-Based Store, Offers Its Consumers the Option

question 13

Multiple Choice

Handyman Hardware, a small community-based store, offers its consumers the option of using credit. Creditworthy individuals are able to use the "HH Credit Card" for all purchases up to a credit limit of $1,000. Consumers are required to pay at least 20 percent of their outstanding balance at the end of each month. A 2 percent finance charge is assessed on the unpaid balance at the end of each billing cycle. Handyman Hardware is employing _____ in its business.

• A) open charge accounts
• B) installment accounts
• C) revolving charge accounts
• D) selective accounts

---

Definitions:

Property, Plant, and Equipment

Long-term tangible assets used in the operating activities of a business, such as land, buildings, and machinery.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production or output volume.

Direct Labor

The wages paid to workers who directly contribute to the manufacturing or production process.

Raw Material

Basic substances in their natural, modified, or semi-processed state, used as inputs for a production process to create goods or services.