Liability Insurance Insures Against the Inability of Employed Persons to Earn

question 42

True/False

Liability insurance insures against the inability of employed persons to earn an income in either their own occupation or any occupation.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; this contribution covers fixed expenses and generates profit.

Absorption Costing

An accounting method that includes all direct costs and allocated overheads in the cost of a product or service, as opposed to variable costing which excludes certain overheads.

Ending Inventory

The total value of goods available for sale at the end of an accounting period or fiscal year.