Which of the Following Statements About Buying Homeowners Insurance Is

question 15

Multiple Choice

Which of the following statements about buying homeowners insurance is true?

• A)There is no reason to carry insurance for more than 80 percent of a dwelling's replacement cost.
• B)The deduction for depreciation will be increased if a personal property replacement cost endorsement is purchased.
• C)Premiums often can be reduced substantially by selecting a higher deductible.
• D)There is little reason to compare cost since the lack of competition results in little price variation among companies.

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Definitions:

Production Department

A specific division within a company that is focused on the manufacturing or production of goods.

Manufacturing Overhead Volume Variance

The difference between the budgeted and actual amount of manufacturing overhead costs allocated based on production volume.

Direct Labor Hours

The total time workers spend working directly on manufacturing a product or providing a service, which is often used in allocating manufacturing overhead.

Normal Capacity

The maximum production level or volume of activity that can be achieved under normal conditions by a business.