An Unintended Consequence of a New Microcredit Program Is That

question 24

Multiple Choice

An unintended consequence of a new microcredit program is that it makes it more difficult for other lenders to determine if potential borrowers are already deeply indebted and?

• A) Allows borrowers to default without losing access to future credit
• B) Allows low income families a way to climb out of poverty
• C) Allows households to plan for a major event such as paying a dowry without having to sell of assets
• D) If the loan is given to women can increase their status in the family or the community

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Definitions:

Variable Overhead

The overhead costs that fluctuate with the level of production or business activity, such as utilities or materials consumed in production.

Direct Materials Purchases Variance

The difference between the actual costs of direct materials purchased and the expected (or standard) costs, impacting the budget and potentially financial results.

Variable Overhead Efficiency Variance

A measure used in management accounting to assess the efficiency of variable production overhead based on the actual time taken to produce goods versus the expected time.

Standard Direct Labor-Hours

Standard direct labor-hours refer to the estimated hours of direct labor work required to produce one unit of a product or service, used for budgeting and variance analysis.