Which of the Following Is Most Accurate About Interest Rates

question 63

Multiple Choice

Which of the following is most accurate about interest rates in Canada?

• A)Charging a rate of three percent for a seven day payday loan is legal in Canada.
• B)As long as loan charges come in the form of fees,they are not included in interest rate calculations in Canada.
• C)Payday loan companies provide a necessary service and have permission to charge above the maximum loan rate in Canada.
• D)The maximum interest rate that can be legally charged on a consumer loan in Canada is 60 percent.

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Definitions:

Job-Order Costing

An accounting method used to track costs and revenues by specific jobs or orders, commonly used in industries with customized products.

Direct Labor Costs

The wages and benefits paid to workers who are directly involved in the manufacturing of products.

Cost Of Goods Manufactured

The total production cost of the goods completed and transferred out of the work-in-process inventory during a specific period.

Predetermined Overhead Rate

A rate calculated before the fiscal period begins, used to allocate projected overhead costs to products or job orders.