In Evaluating Your Credit Application, a Lender May

question 176

Multiple Choice

In evaluating your credit application, a lender may:

• A) ask your age.
• B) want to know if you are on public assistance.
• C) require your marriage certificate.
• D) ask if you are married or divorced.
• E) ask your race and nationality.

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce each product or service, aiming for more precise cost allocation.

Overhead Cost

All indirect costs associated with the operation of a business, including administrative expenses, depreciation, and utilities.

Activity-Based Costing

A costing methodology that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Machine-Hours

A measure of production time, calculated by multiplying the number of machines used by the number of hours they operate.