Explain How an Insurance Contract Avoids Being Void as a Wager

question 3

Essay

Explain how an insurance contract avoids being void as a wager.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated in the production process.

Avoidable Costs

Avoidable Costs are expenses that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Future Costs

Expenses or expenditures that are expected to be incurred in future accounting periods.

Fixed Costs

Regular, constant expenses that a business incurs regardless of the level of goods or services produced.