Which of the Following Is Not a Characteristic of Short-Term

question 220

Multiple Choice

Which of the following is not a characteristic of short-term financing?

• A) It must be repaid within three years.
• B) It is easier to obtain than long-term financing.
• C) There is less risk of nonpayment to the lender.
• D) The amounts are usually smaller than amounts obtained through long-term sources.
• E) There is a close working relationship between borrower and lender.

Understand the fundamental principles and calculations involved in activity-based costing (ABC).

Comprehend the distinctions among plantwide overhead rate, departmental overhead rate, and ABC.

Identify the types of costs associated with manufacturing (direct materials, direct labor, and manufacturing overhead) and how they relate to product cost.

Recognize the role and impact of facility-level costs within a costing system.

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Definitions:

Fire Extinguisher

A portable device used to put out small fires by discharging a substance that cools the burning material, deprives the flame of oxygen, or interferes with the chemical reactions occurring in the flame.

Positive Activities

Actions or pursuits that contribute to well-being and happiness, often involving physical, mental, or social engagement.

Self-confidence

The state of trust in one's abilities, qualities, and judgment.

Budget Period

A specific timeframe, usually a fiscal year or quarter, within which financial planning and expenditure occur.