In Comparing Savings Banks and S&Ls, Which of the Below

question 12

Multiple Choice

In comparing savings banks and S&Ls, which of the below comparisons is FALSE?

• A) Although the total deposits at savings banks are less than those at S&Ls, savings banks are typically larger institutions.
• B) Asset structures of savings banks are always greater than S&Ls.
• C) Because states have permitted more portfolio diversification than was permitted by federal regulators of S&Ls, savings bank portfolios weathered funding risk far better than S&Ls.
• D) Typically, the ratio of deposits to total assets is greater for savings banks than for S&Ls.

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Definitions:

Manufacturing Overhead

A rephrased definition: All indirect costs incurred during the production process, which are not directly traceable to individual products.

Predetermined Overhead Rate

A rate calculated at the beginning of the accounting period to allocate overhead costs to products or services, based on estimated costs and activity levels.

Direct Labor-Hours

The cumulative number of hours put in by workers who are directly engaged in producing goods or delivering a service.

Manufacturing Overhead

Costs related to the production environment that cannot be directly tied to the finished product, such as maintenance expenses, and are necessary for the manufacturing process.