The Basic Purpose of Insurance Is to Protect You and Your

question 144

True/False

The basic purpose of insurance is to protect you and your family from the results of accidental losses.

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Definitions:

Direct Material

Raw materials that can be directly traced to the production of a specific product.

Product Costs

Costs that are considered to be directly associated with the production of goods or services, including direct labor, direct materials, and manufacturing overhead.

Depreciation

The allocation of the cost of tangible assets over their useful lives, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Insurance

Insurance is a financial product that offers protection against potential future losses or damages in exchange for premiums paid by the policyholder.