Costs That Cannot Be Conveniently Traced to a Cost Object

question 27

Short Answer

Costs that cannot be conveniently traced to a cost object are known as ____________________ costs.

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Definitions:

Insurance Contract

A legally binding agreement between an insurer and the policyholder, specifying the claims which the insurer is legally required to pay in exchange for an initial payment, known as the premium.

Insurable Interest

A legitimate interest in ensuring the preservation or safety of an object or person, to the extent that loss or harm would result in financial loss or hardship.

Insurance Proceeds

Funds received from an insurance company as a payout for claims made under an insurance policy.

Life Insurance

A contract between an insurer and a policyholder where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.