If Your Windshield Is Broken by a Rock as You

question 100

Multiple Choice

If your windshield is broken by a rock as you drive down the road,the damages would be covered by your ____ coverage.

• A)collision
• B)comprehensive
• C)uninsured motorist
• D)property damage liability

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Definitions:

Fixed Expenses

Costs that do not vary with the level of output or sales, such as rent and salaries.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

Monthly Fixed Component

The portion of fixed costs, such as rent or salaries, that does not change with the volume of production or sales in a given month.

Lubrication Cost

The expense associated with maintaining machinery through oiling and greasing to ensure smooth operation.