Disadvantages of Leasing a Vehicle Include All of the Following

question 55

Multiple Choice

Disadvantages of leasing a vehicle include all of the following, except

• A) no equity in the car.
• B) cost of finding a buyer for the car at the termination of the lease.
• C) responsibility for maintenance costs.
• D) additional charges beyond the monthly lease payments.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production process of goods or services.

Standard Unit Cost

The fixed cost calculated to produce one unit of a product, including labor, materials, and overhead.

Materials Price Variance

Refers to the difference between the actual cost of materials and the expected (or standard) cost.

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected (or standard) quantity, indicating efficiency.