Match the Term with Its Definition

question 126

Multiple Choice

Match the term with its definition.
-Keeping a loss from happening

• A)actual cash value (ACV)
• B)commercial general liability (CGL) insurance
• C)direct loss
• D)disability buyout insurance
• E)disability insurance
• F)indirect loss
• G)loss avoidance
• H)loss prevention
• I)loss reduction
• J)replacement value of property

Analyze the implications of favorable and unfavorable variances on business decisions.

Understand the importance of management by exception in controlling operations.

Understand the principles of recording interest income and the impact on financial statements.

Grasp the concept and implications of loan collateralization and the responsibilities of borrowing and lending parties.

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Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Units

Refers to a standard quantity or measurement used for comparison and calculation, such as in physics or mathematics.