In group life insurance, an insurer might accept an exposure who could not meet the insurer's standards for individual life insurance
Indicate whether the statement is true or false
TRUE
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Astro, Inc. uses target costing and will soon enter a very competitive marketplace in which it will have limited influence over the prices that are charged. Management and consultants are working to fine-tune the company's sole service, which hopefully will generate a 12% return (profit) on the firm's $24,000,000 asset investment. The following information is available:Hours of service to be provided: 34,000Anticipated variable cost per service hour: $30Anticipated fixed cost: $2,560,000 per yearRequired:A. How much profit must Astro produce to achieve a 12% return?B. Calculate the revenue per hour that Astro must generate to achieve a 12% return.C. Assume that prior to entering the marketplace, management conducted a planning exercise to determine whether a 14% return could be attained
in year no. 2. Can the company achieve this return if (a) competitive pressures dictate a maximum selling price of $195 per hour and (b) service hours, variable cost per service hour, and fixed costs are the same as the amounts anticipated in year no. 1? Show calculations.D. If your answer to part "C" is "no," suggest and briefly describe a procedure that Astro might use to achieve desired results. What will be an ideal response?
All else being equal, investments with longer payback periods are preferable
Indicate whether the statement is true or false
Which of the following are advantages of reducing inventory?
I. Engineering changes can be made sooner. II. Quality can be improved. III. Less space is needed in manufacturing. IV. Lead time will be shorter. A) I, II, III and IV B) I, II and IV only C) III and IV only D) I, II and III only E) II, III and IV only
The normal balance of a contra asset account is a debit.
Answer the following statement true (T) or false (F)