Which of the Following Is Considered an Unfair Comparison

question 71

Multiple Choice

Which of the following is considered an unfair comparison?

• A)FMV lease versus $1.00-out lease
• B)$1.00-out lease versus true tax lease
• C)lease versus buy
• D)lease versus borrow
• E)buy versus borrow

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Definitions:

Machine-hour

A measure of the amount of time a machine is run, often used as a basis for allocating manufacturing overhead to products.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by using the highest and lowest levels of activity.

Office Expense

Refers to the costs associated with running an office, including rent, supplies, and utilities.

Escrow Completed

The point at which all conditions of a real estate transaction are met and the title of the property is transferred from the seller to the buyer.