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Which of the Following Statements About the Needs Approach for Estimating

question 48

Multiple Choice

Which of the following statements about the needs approach for estimating the amount of life insurance to purchase is (are) true?
I.It involves an analysis of various family needs which must be met if a family breadwinner dies.
II.Its use is appropriate only if a person currently has no life insurance protection.


Definitions:

Direct Labor Time Variance

The difference between the estimated time for production and the actual time taken, multiplied by the wage rate.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating efficiency in labor usage.

Direct Labor Rate Variance

The difference between the actual labor cost incurred and the expected (or standard) labor cost for the actual production level.

Direct Labor Variances

The differences between the budgeted and actual labor costs incurred during a production process, analyzed to control and optimize labor expenses.

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