Which of the following is a measurement method that reflects historical value?
A) ?Fair value
B) ?Acquisition cost
C) ?Replacement cost
D) ?Net realizable value
B
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Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $56,560 per month plus $2,618 per flight plus $5 per passenger. The company expected its activity in February to be 63 flights and 254 passengers, but the actual activity was 62 flights and 255 passengers. The actual cost for plane operating costs in February was $218,820. The plane operating costs in the planning budget for February would be closest to:
A. $222,349 B. $220,151 C. $218,820 D. $222,764
For an activity to be treated as a public nuisance there must be some interference with the health, safety, or comfort of the public
a. True b. False Indicate whether the statement is true or false
Nathan was hired as an actuary with ABC Insurance. Nathan was asked to calculate the annual premium for a new product and to explain his calculations to ABC's director of ratemaking
Nathan calculated the pure premium and presented this value as the final premium. After Nathan's presentation, the director of ratemaking said, "You left out something very important. If we sell coverage at the pure premium rate, we'll be out of business soon." What did Nathan overlook in his calculations? A) loading for expenses B) the underwriting cycle C) seasonality of claims D) investment income
Inventory management involves developing and maintaining adequate assortments of products to meet customers' needs.
Answer the following statement true (T) or false (F)