The Term "Variable" in a Variable Life Policy Refers to the

question 24

Multiple Choice

The term "variable" in a variable life policy refers to the

• A)policyholder's ability to vary the premiums.
• B)insurer's ability to vary the rate of return on the policy.
• C)variable growth rate of the cash value of the policy.
• D)insurer's ability to vary the premiums.
• E)the policyholder's ability to cancel the plan.

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Definitions:

Direct Labor Hours

The cumulative hours employees engaged in manufacturing products or delivering services have worked.

Applied Overhead Rate

A predetermined rate used to allocate manufacturing overhead costs to individual units of output.

Manufacturing Overhead Application Rate

The rate used to allocate manufacturing overhead costs to individual units of production, based on a chosen activity base.

Machine Cost

The total expenditure associated with acquiring and preparing a machine for its intended use.