Which of the Following Methods Can NOT Be Employed by Lenders

question 63

Multiple Choice

Which of the following methods can NOT be employed by lenders to control inventory that has been used as security for a loan?

• A) blanket liens
• B) trust receipts
• C) warehousing
• D) compensating balance

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Definitions:

Total Labor Variance

Represents the difference between the budgeted or standard cost of labor and the actual cost incurred, capturing inefficiencies or savings in labor costs.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that should have been incurred, given the level of activity, which is under the control of management.

Overhead Volume Variance

The difference between the expected (budgeted) and the actual overhead costs incurred, due to variations in the level of produced or sold volume.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used as a benchmark to measure performance.