Which of the Following Statements About the Provisions of the Building

question 12

Multiple Choice

Which of the following statements about the provisions of the building and personal property coverage form is (are) true?
I.A separate deductible must be satisfied for each building damaged in the same occurrence.
II.Under the replacement cost option,there is no deduction for depreciation.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Economies Of Scale

The cost advantage achieved when production becomes efficient, as the output increases, the average cost per unit decreases.

Production Expertise

The specialized skills and knowledge in creating and manufacturing goods effectively and efficiently.

Gray Market Activities

The trade of legal goods through unauthorized, unofficial, or unintended distribution channels.

Product Standardization

The process of setting uniform characteristics for a particular product or products, which can help reduce costs and increase quality.