Which of the following statements about methods for estimating loss reserves for property and casualty insurers is (are) true?
I. The judgment method involves the use of a statutory formula to estimate the loss reserve.
II. The average value method is used when the number of claims is large and the claims are settled quickly.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
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a. True b. False Indicate whether the statement is true or false
Alberta Corporation uses a job-order costing system. The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $170,000(2) Indirect materials requisitioned for use in production, $11,000(3) Direct labor wages incurred, $105,000(4) Indirect labor wages incurred, $103,000(5) Depreciation recorded on factory equipment, $38,000(6) Additional manufacturing overhead costs incurred, $63,000(7) Manufacturing overhead costs applied to jobs, $200,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $450,000Required:a. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.?Work In Process?Bal.$35,000????????Manufacturing
Overhead???????????????b. Determine the underapplied or overapplied overhead for the month. What will be an ideal response?
A consignment deal would be an example of a(n) ________
A) unconditional contract B) sale or return contract C) sale or approval contract D) unequivocal contract
Why are “before and after” sketches useful?
a. They show the effect of the company’s product or service on the customers’ lives. b. They show the potential for profitability. c. They show what can be accomplished with the initial investment. d. They show the status of the company in one year’s time.