Which of the following statements is (are) true concerning the use of an individual's credit history as an insurance rating factor?
I. Individuals with poor credit histories, as a group, generally file fewer homeowners claims than do individuals with good credit histories.
II. A poor credit history can be improved over time, allowing for the purchase of homeowners insurance at a lower premium.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
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The PJC department of McIntyre Company shows gross sales of $730,600 for computer supplies and $934,900 for general office supplies. It has determined that computer supplies cost $534,000 and that general office supplies cost $391,400 . What is the gross profit percentage for the computer supplies section of the PJC department?
a. $196,600 b. 1.4% c. 26.9% d. 73.0%
Econ Company produces widgets. Each widget sells for $120, and the company sells approximately 50,000 widgets each year. Unit cost data for the year follows: The unit cost of widgets for direct cost inventory purposes is:
a. $75 b. $45 c. $89 d. $70
Historically, the average time to service a customer complaint has been 3 days and the standard deviation has been 0.50 day. Management would like to specify the control limits for an chart with a sample size of 10 and 3- sigma limits
The UCL for the chart would be: A) less than or equal to 3.30. B) greater than 3.30 but less than or equal to 3.40. C) greater than 3.40 but less than or equal to 3.50. D) greater than 3.50.
For the following financial statement items, calculate trend percentages using Year 1 as the base year: ?Year 5?Year 4?Year 3?Year 2?Year 1Sales$1,195,400?$1,118,000?$1,049,000?$963,200?$860,000Cost of sales752,400?704,000?671,000?616,700?559,000Gross profit$443,000?$414,000?$378,000?$346,500?$301,000
What will be an ideal response?