Which One of the Following Is a Variable Cost for an Insurance

question 166

Multiple Choice

Which one of the following is a variable cost for an insurance company?

• A) rent of the building
• B) CEO's salary
• C) electricity expenses
• D) property taxes

Recognize the concept of earnings quality and the implications of earnings surprises on stock returns.

Understand the principles and processes involved in preparing a master budget.

Develop skills in calculating raw materials required for production based on sales forecasts and production needs.

Learn to prepare a budgeted income statement incorporating projected sales, costs, and expenses.

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Definitions:

Self-Actualization

The realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Physiological Needs

are the basic physical requirements for human survival, such as air, water, food, shelter, and sleep, forming the base of Maslow's hierarchy of needs.

Belongingness Needs

The innate human need to feel connected and accepted by others, often considered a fundamental human motivation.

Alderfer's Existence Needs

A component of Clayton Alderfer's ERG theory, focusing on the basic physical and material well-being requirements akin to Maslow's physiological and safety needs.