An Independent Agent Owns the X-Date

question 30

True/False

An independent agent owns the x-date.This means that the insurance firm cannot contact the insured directly in case of delay in payment of premiums, but have to inform the agent who contacts the insured.

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Definitions:

Denominator Activity

The level of activity used to compute a predetermined overhead rate, representing the total amount of absorption base that is expected to be utilized.

Efficiency Variances

Refers to the differences between the actual and standard costs attributable to efficiency in using resources, often analyzed in labor and variable overhead.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.

Denominator Level

In cost accounting, it refers to the standard quantity or activity used in calculating the predetermined overhead rate.