Which of the Following Is Considered a Spontaneous Source of Financing

question 155

Multiple Choice

Which of the following is considered a spontaneous source of financing?

• A) short-term notes payable
• B) accounts payable
• C) long-term notes payable
• D) preferred stock

---

Definitions:

Fixed Manufacturing Overhead

Refers to the consistent, non-variable costs associated with manufacturing a product, such as factory lease payments and salaries of permanent staff.

Direct Labor

The wages and other costs for labor that are directly involved in the manufacturing of a product or the provision of a service.

Raw Material

The basic material from which a product is made, typically processed and used in the manufacturing process.

Materials Price Variance

The difference between the actual cost of raw materials and the expected (standard) cost, used in budgeting and financial analysis to gauge purchasing efficiency.