Mr Jiminez Wants His 16 Year Old Son to Buy

question 47

Multiple Choice

Mr. Jiminez wants his 16 year old son to buy a life insurance policy as an investment for college. He asks you if it is legal for a minor child to purchase and own life insurance. You correctly respond by saying:

• A) minors never have capacity to enter contracts
• B) minors always have capacity to enter contracts
• C) the courts have ruled that it is illegal for minors to purchase life insurance
• D) the courts have ruled both ways on minors' ability to own life insurance

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Definitions:

Direct Labor Hour

A metric that quantifies the amount of time a worker spends producing goods or providing services that are directly associated with the cost of manufacturing a product or delivering a service.

Fixed Overhead

Regular, ongoing business expenses that do not vary with the level of production or sales activities, such as rent, salaries, and insurance.

Budgeted Overhead

The total planned or forecasted costs of running operations that are not directly tied to product production, including utilities, rent, and salaries.

Allocated

The process of assigning or distributing resources or costs to various departments or accounts based on a specific criterion.