The Type of Credit Insurance That Landed AIG into Trouble

question 53

Multiple Choice

The type of credit insurance that landed AIG into trouble in 2008 is called

• A)insurance rate swaps.
• B)monoline insurance.
• C)default insurance.
• D)credit default swaps.

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Definitions:

Direct Labour

Rephrased: The workforce directly involved in manufacturing products or providing services, whose costs directly affect the cost of goods sold.

Variable Manuf. Overhead

Variable Manufacturing Overhead includes those manufacturing overhead costs that vary directly with the level of production, such as utilities for the production facility.

Actual Variable Manuf. Overhead

The actual amount incurred in variable overhead costs during manufacturing, contrasting with the budgeted or standard costs.

Direct Materials

Materials in their basic form that are specifically identifiable with the manufacturing of certain products or services.