Given a Cash Value Policy with the Following Characteristics: Face

question 67

Multiple Choice

Given a cash value policy with the following characteristics: face value = $200,000,cash value = $50,000,outstanding loans = $10,000 and surrender charges = $1,000,the benefits payable at death are

• A)$200,000.
• B)$199,000.
• C)$190,000.
• D)$150,000.

---

Definitions:

Process Costing

A method of costing used in manufacturing where costs are assigned to batches or production runs, typically for similar products.

Equivalent Units

A concept used in cost accounting to convert partial units of production into a number of fully completed units.

Materials

Materials or ingredients utilized in the creation or fabrication of products.

First Processing Department

The initial department in a manufacturing process where raw materials begin their transformation into finished products.