Which of the Following Is NOT a Differentiation Between Deposit

question 79

Multiple Choice

Which of the following is NOT a differentiation between deposit insurance and state guaranty funds for the insurance industry?

• A)The required contributions provided by surviving insurers differs widely across states.
• B)The annual pro rata contributions often are legally capped for each insurer as a percent of premium income.
• C)A permanent guaranty fund does not exist for the insurance industry.
• D)Contributions by surviving firms into the guaranty fund occur before an insurance company has failed.
• E)The programs that are sponsored by state insurance regulators are administered by private insurance companies.

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Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing of a product and can be easily traced to it.

Job 101

A specific task or project identified by a numerical code, often used in job costing systems to track costs and progress.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated overhead costs and estimated activity base, used to allocate overhead costs to products or job orders.

Manufacturing Overhead Account

An account that accumulates all indirect manufacturing costs, such as utilities, rent, and salaries for managers.