Insurance Brokerage Company uses a computer-based method of estimating the losses its clients will suffer if a severe storm or earthquake occurs. This method of estimating losses is called
A) capital budgeting.
B) securitization of risk.
C) risk mapping.
D) catastrophe modeling.
Answer: D
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Some companies use _____ techniques to try to predict what customers are likely to purchase in the future.
A. data-mining B. web scraping C. knowledge extraction? D. information integration?
Which of the following statements is true about a multiple-channel system?
A) It reduces the cost of distribution. B) It is a type of a direct channel where intermediaries are eliminated through the use of information technology. C) It simplifies coordination and management of the channel of distribution. D) Loss of control is a typical problem associated with a multiple-channel system.
Which of the following statements is incorrect with respect to parent-subsidiary corporations?
A. With a consolidated return, net losses of one company can offset net income from another company. B. A parent-subsidiary group must file a consolidated tax return. C. If a consolidated tax return is filed, losses on intercompany sales cannot be immediately recognized. D. A parent-subsidiary group is one where a common parent corporation owns, directly or indirectly, at least 80% of one or more other corporations.
Luchini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:a.The budgeted selling price per unit is $111. Budgeted unit sales for April, May, June, and July are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.b.Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. c.The ending finished goods inventory equals 10% of the following month's sales. d.The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $5.00 per pound. e.Regarding raw materials purchases, 40% are paid for in the month
of purchase and 60% in the following month. f.The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct labor-hours. g.Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead is zero. The budgeted accounts receivable balance at the end of May is closest to: A. $672,660 B. $747,000 C. $1,121,100 D. $448,440