Which of the Following Defines an Annuity

question 14

Multiple Choice

Which of the following defines an annuity?

• A)For a fee,an insurance company provides you with regular income until you die.
• B)A surcharge is added to life-insurance premiums paid by persons in dangerous occupations.
• C)Annuity is another name for stock funds managed by mutual fund managers.
• D)Annuity is another name for any diversified portfolio.

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Definitions:

Variable Overhead Rate Variance

The gap between what was actually spent on variable overhead and what was predicted to be spent, considering the actual activity level.

Rate Variances

Differences between the standard or expected rates of costs and the actual rates incurred, often analyzed in cost accounting.

Variable Overhead

Refers to the costs that fluctuate with changes in production volume, such as utilities or materials that are consumed directly as a result of manufacturing activities.

Labor Rate Variance

The difference between the actual wage rate paid to workers and the expected or standard wage rate, multiplied by the actual hours worked.