Which of the Following Is Not a Desirable Feature in a Long-Term

question 117

Multiple Choice

Which of the following is not a desirable feature in a long-term care policy?

• A)inflation protection
• B)optional renewability clause
• C)duration of benefits of 6 years
• D)coverage for Alzheimer's disease
• E)coverage for preexisting conditions

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Definitions:

Product Costs

The total costs associated with making a product, including direct materials, direct labor, and manufacturing overhead.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor costs.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profits.

Incremental Manufacturing Cost

The additional cost incurred to produce one more unit of a product, excluding fixed costs.