Which of the Following Best Describes the Personal Articles Floater

question 100

Multiple Choice

Which of the following best describes the personal articles floater?

• A) an endorsement providing coverage for items of expensive personal property not adequately covered under the standard homeowners policy.
• B) an addition to the automobile policy intended to cover items of personal property that are often in or upon a covered automobile.
• C) a specialized inland marine policy covering boats and trailers used with boats.
• D) a liability policy that covers against liability caused by ownership or use of items of personal property.
• E) none of the above.

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Definitions:

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process, to calculate the total cost of manufacturing a product.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs incurred to convert raw materials into finished goods.

Process Costing

An accounting methodology used for homogeneous products, where the cost of the product is calculated by averaging the total production costs over the total units produced.