The Individual Consumer Must Ultimately Deal with Several Issues to Make

question 11

Multiple Choice

The individual consumer must ultimately deal with several issues to make an efficient purchase in the insurance market. Which of the following generally should not be a major consideration?

• A)the type of policy covering the exposure(s)
• B)the maximum amount of insurance coverage
• C)the commission the agent will receive from the sale
• D)the insurance agent's expertise

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and salaries for indirect labor.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product.

Machine-Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing overhead rates.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, based on a pre-established criterion.