Which of the Following Statements Is (Are)true with Regard to the ISO

question 42

Multiple Choice

Which of the following statements is (are) true with regard to the ISO commercial crime coverage forms?
I.The discovery version only covers losses which occur during the policy period.
II.The loss-sustained version covers losses which occur during the policy period and the loss is discovered during the policy period or within one year after the policy expires.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Fixed Overhead

Fixed overhead refers to the indirect costs of production that remain constant regardless of the level of output, such as rent, salaries, and insurance.

Machine Hour

A measure of the operating time of a machine, used in costing to allocate expenses based on machine use.

Variable Overhead

Costs that vary in direct proportion to changes in a firm's level of activity, such as utilities or raw materials.

Spending Variance

The difference between the actual amount spent in producing a certain number of units and the budgeted or standard amount expected to be spent.