An Insurance Contract Made with a Business Entity That Covers

question 42

Multiple Choice

An insurance contract made with a business entity that covers its employees under a single policy is called a/an:

• A) group contract.
• B) business contract.
• C) equilateral contract.
• D) managed care contract.

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Definitions:

Direct Labor Variance

The discrepancy between the expected (budgeted) cost of direct labor and the actual cost incurred during a production period.

Direct Labor Time Variance

The difference between the estimated time to produce a good and the actual time taken, often used in cost accounting.

Actual Costs

Actual costs are the expenses that a company incurs for producing goods or services, including materials, labor, and overhead, as opposed to estimated or budgeted costs.

Standard Costs

The predetermined costs of manufacturing a product or providing a service, used as benchmarks against actual costs.