Which of the Following Individual Situations Would Best Justify the Cost

question 60

Multiple Choice

Which of the following individual situations would best justify the cost of a life insurance policy?

• A) Single income with young children.
• B) Single income, no dependents.
• C) Dual income, grown children.
• D) Married couple, each had substantial income before retirement.

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Definitions:

Model 220 Machine

a specific model or type of machinery, often referenced in manufacturing or industrial contexts, but without additional context, the exact nature or use cannot be determined.

Contribution Approach

A managerial accounting method that separates fixed costs from variable costs to determine the contribution margin per unit and overall contribution towards fixed costs and profits.

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.