Which of the Following Aspects of a Customer's Loan Application

question 57

Multiple Choice

Which of the following aspects of a customer's loan application should a bank's real estate loan officer consider carefully when making a home mortgage?

• A)The amount and stability of the borrower's income
• B)The borrower's available savings and where the down payment is coming from
• C)The borrower's track record in caring for and managing property
• D)The outlook for real estate sales in the local market area
• E)All of the options are factors that need to be looked into carefully

---

Definitions:

Activity-Based Costing

A method of accounting where costs are assigned based on the activities and processes that contribute to the production of a product or service.

Activity Cost Pool

A grouping of all the costs associated with a particular activity, used in activity-based costing.

Cost Allocation Base

A method or factor used to assign costs in an equitable manner to various cost objects like departments, products, or projects.

Departmental Overhead Rate

A rate used to allocate overhead costs to individual departments based on relevant criteria, such as direct labor hours or machine hours.