The Personal Property Floater

question 6

Multiple Choice

The personal property floater:

• A)provides either blanket or scheduled coverage of items that are not covered adequately in a standard homeowner's policy.
• B)is available to meet the needs of "innocent" victims of accidents who are negligently injured by uninsured, underinsured, or hit-and-run motorists.
• C)is a specialized inland marine policy covering boats and trailers used with boats.
• D)covers against liability caused by the ownership or use of items of personal property.
• E)is an additional amount of insurance equal to a specified percentage of the replacement value of the property.

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Definitions:

Monthly Fixed Cost

Regular, consistent costs that do not vary with production volume or business activity level, calculated on a monthly basis.

Budgeted Sales

The projected amount of sales revenue that a company plans to achieve in a specific period, based on market analysis and company goals.

Ending Inventory

The monetary amount of merchandise on hand for sale when an accounting cycle concludes, established by the initial stock plus purchases less the expenses of goods sold.

Production Budget

An estimate of the total units to be produced in a given period, factoring in expected sales and inventory requirements.