The law of large numbers allows the insurer to predict aggregate dollar losses in advance of their occurrence
Indicate whether the statement is true or false
TRUE
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During March, Department A started 300,000 units of product in a particular production process. The beginning work in process inventory was 50,000 units, and the ending inventory was 40,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO
costing method. The number of equivalent units produced with respect to conversion costs was a. 296,000. b. 306,000. c. 336,000. d. 316,000.
Sinkmaster Corp settled a large lawsuit that caused earnings to be negative for the quarter. This
quarterly loss was the first in 22 years. In addition, the company has a record of 48 consecutive quarters of dividend payments. Which of the following is correct? A) The clientele effect says that investor choice of investment vehicle is independent of dividend policy and therefore the payment/omission of the dividend is immaterial. B) The company cannot pay dividends this quarter since the company had no earnings. C) The company can use cash generated through prior retention of earnings, or borrowed funds to pay the dividend. D) The company can omit the dividend; shareholders are always understanding about the riskiness of business.
According to the International Product Cycle Theory comparative advantage shifts to developing countries such as Mexico, India and China in the _________ stage of the cycle.
(a) First (b) Second (c) Third (d) Fourth
On a state diagram, a state is considered to span across a period of time
Indicate whether the statement is true or false