Fred Insured His House for Its True Value of $100

question 13

Multiple Choice

Fred insured his house for its true value of $100 000 with insurer A and for $50 000 with insurer B.When the house was totally destroyed by fire,Fred was entitled to receive:

• A)$100 000 from A only.
• B)$50 000 from A and $50 000 from B.
• C)$100 000 from A and $50 000 from B.
• D)$66 667 from A and $33 333 from B.

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Definitions:

Job Order Cost Systems

An accounting system used to assign costs to specific customer orders or batches, tracking the direct materials, direct labor, and overhead costs incurred for each.

Unit Costs

Unit costs, also known as cost per unit, represent the total expense incurred to produce, store, and sell one unit of a product or service, including direct and indirect costs.

Labor Costs

The total amount of money a business spends on employee salaries, wages, and other benefits.

Individual Job

Definition: A distinct task or project undertaken by a business, where costs and revenues can be directly attributed and tracked.