Consumers Are Not Considered to Be the Customers If They

question 55

Multiple Choice

Consumers are not considered to be the customers if they do not have continuing relationship with the financial institution. A relationship is considered NOT to be a continuing relationship if:

• A) The consumer obtains financial services only in isolated transactions, such as using an ATM
• B) The consumer's loan is sold and servicing rights are retained
• C) The consumer purchases airline tickets or travel insurance in an isolated transaction
• D) The consumer is a beneficiary or grantor of a trust not administrated by the bank

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Definitions:

Cost Driver

A factor that causes a change in the cost of an activity.

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the actual fixed overhead incurred, due to changes in production volume.

Standard Cost

A predetermined cost of manufacturing an item, including direct materials, labor, and overheads, used for budgeting and performance evaluation.