Property Valued at $200,000 Was Insured for $140,000

question 3

Short Answer

Property valued at $200,000 was insured for $140,000. The policy contained a 60% coinsurance clause. A fire caused $150,000 in damages. Compute the amount the property owner must pay if the property is repaired for $150,000.

Comprehend the differences between various types of laws including statutory law, criminal law, civil law, public law, and private law.

Recognize the function of the legislative branch in creating statutory law.

Define the scope and application of business law.

Identify the role of the National Conference of Commissioners on Uniform State Laws in promoting legal uniformity.

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Definitions:

Cost of Goods Sold

The straight costs associated with producing the goods that a company sells, which include labor and materials.

Days' Payable Outstanding

A financial metric that calculates the average number of days it takes a company to pay its invoices from trade creditors.

Accounts Payable

The amounts a business owes to its lenders or suppliers for transactions involving goods and services bought on credit.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, required to transform raw materials into finished goods.