A Possible Disadvantage of FHA and VA Mortgages Can Be

question 96

Multiple Choice

A possible disadvantage of FHA and VA mortgages can be:

• A) higher debt ratios for buyers.
• B) a longer processing time.
• C) loans may be assumable.
• D) the monthly payments can be higher than those of other mortgages.
• E) the high down payment requirements.

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Definitions:

Estimated Total Manufacturing Overhead

The anticipated total costs associated with the indirect expenses of producing goods, such as utilities and rent for the manufacturing facility.

Job-Order Costing System

An accounting method that assigns costs to specific production jobs or batches and is used when the products produced are sufficiently distinct from each other.

Predetermined Overhead Rate

A rate calculated before the fiscal year begins, used to estimate the manufacturing overhead for each unit of production.

Machine-Hours

A measure of production output or activity based on the number of hours machinery is operated.