Beverly Lives in a Sparsely Populated Area in Northern Idaho

question 33

Multiple Choice

Beverly lives in a sparsely populated area in northern Idaho. Some insurance companies marketing coverage in northern Idaho cannot afford to have full-time adjustors there. Several insurers hire Beverly to adjust claims for their insureds. Beverly charges the insurers a fee for each claim that she settles. Beverly is a(n)

• A) public adjustor.
• B) adjustment bureau.
• C) independent adjustor.
• D) company adjustor.

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Definitions:

Production Budget

An estimate of the total units that must be produced in a given period to meet anticipated sales demand and ending inventory requirements.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Units

A generic term referring to the basic measure or quantity of a product or service.

Direct Labour Budget

A financial plan that estimates the cost of direct labor required to meet production goals.