All of the Following Will Lower the Premium of Long-Term

question 60

Multiple Choice

All of the following will lower the premium of long-term care insurance, except

• A) having a longer waiting period before the policy goes into effect.
• B) having a higher stop-loss provision.
• C) waiting until you are retired to obtain the insurance.
• D) choosing to receive benefits for a limited period.

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Definitions:

Standard Costing System

An accounting system that uses predetermined costs for products or services to assess the efficiency of operations by comparing them to actual costs incurred.

Standard Quantity Allowed

The quantity of materials or resources authorized for use in the production of a certain level of output under standard operating conditions.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold to customers.

Standard Costing System

A method of cost accounting that involves assigning expected costs to production and then analyzing any variances between those expected costs and actual costs incurred.