What Keeps Members Contributing to a Rotating Credit Association

question 49

Multiple Choice

What keeps members contributing to a rotating credit association?

• A) There is strong social pressure to keep paying regularly.
• B) They complete legal paperwork requiring a steady commitment.
• C) If members quit after receiving their payment, they have to pay the money back.
• D) Membership in a rotating credit association is nonvoluntary.

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Definitions:

Manufacturing Overhead

Manufacturing overhead includes all the indirect costs associated with the production process, such as utilities, depreciation, and the salaries of support staff.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods during a specific period, including materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated overheads and activity levels.

Direct Labour-Hour

A measure of the amount of time a worker spends on a specific task or production activity.