Which of the following statements about a typical personal umbrella policy is (are) true?
I. Losses covered under an underlying policy and the umbrella policy are settled on a pro rata basis.
II. Losses not covered by the basic underlying contracts are subject to a self-insured retention which typically is at least $25,000.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: D
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The terms referring to contingencies differ between U.S. GAAP and IFRS
a. True b. False Indicate whether the statement is true or false
Outdoor Living Company has just received a special order for 500 hammocks. Outdoor Living has sufficient idle capacity to accept the order. Accepting the order will increase Outdoor Living's total variable manufacturing costs. Which type of cost is considered relevant to Outdoor Living's decision of whether to accept or reject the special order?
A. Salary of the production manager B. Depreciation on equipment that would be used to make the hammocks C. Raw materials to make the 500 hammocks D. Company president's salary
The horizontal analysis is computed by which of the following formulas?
A) ((earlier period amount - later period amount)/base period amount) × 100 B) (later period amount/earlier period amount) × 100 C) (base period amount/dollar amount of change) × 100 D) (dollar amount of change/base period amount) × 100
Sunshine Blender Company sold 3000 units in October at a sales price of $45 per unit. The variable cost is $25 per unit. Calculate the total contribution margin.
A) $135,000 B) $60,000 C) $75,000 D) $37,500