The annual insurance premium for the factory building would be a: a. fixed cost, period cost,...

The annual insurance premium for the factory building would be a: a. fixed cost, period cost, and indirect cost with regard to units of product. b. fixed cost, product cost, and direct cost with regard to units of product. c. variable cost, product cost, and direct cost with regard to units of product. d. fixed cost, product cost, and indirect cost with regard to units of product.

Expert Solution

d ) fixed cost,product cost,indirect cost with regards to unit of production

the annual insurance premium for factory buillding comes under fixed manufacturing overhead so it is fixed and the manufacturing overhead so it is an product cost which is indirect

ekkarill92 answered 2 years ago

an example of step fixed costs would be: 1. the cost of factory insurance because the...

an example of step fixed costs would be: 1. the cost of factory insurance because the insurance company increased the premium 2. the cost of supervision since a second supervisor was added to oversee the new second shift. 3. depreciation of equipment because it is computed on the units of production. 4. utility costs because it costs more to heat the building in the winter.

A firm owns a building worth 1,500,000. The premium for insurance on the building will cost...

A firm owns a building worth 1,500,000. The premium for insurance on the building will cost $50,000.00. Expected annual losses on the building is $30,000. The firm would earn 14% on funds applied to operations. Invested reserves earn 4%. What is the true cost of retaining the risk of loss on its building, including opportunity costs. Explain your answer and show your work.

Discuss the building blocks of an insurance premium.

Please explain and discuss the building blocks of the insurance premium.

For life insurance policies, some of the premium pays for the cost of the insurance, and...

For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.9% compounded monthly on the cash value of their policies Company 2: pays 4.93% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.)...

The insurance cost for a large factory would be considered a: Multiple Choice unit-level cost. batch-level...

The insurance cost for a large factory would be considered a: Multiple Choice unit-level cost. batch-level cost. product-level cost. facility-level cost.

Consider an auto insurance policy that for a period of five years would guarantee annual renewal...

Consider an auto insurance policy that for a period of five years would guarantee annual renewal to the policyholder at the same premium rate the insurer charges to drivers that have not had accidents or tickets. In other words, the contract would guarantee the policyholder against rate increases that otherwise would occur from a poor driving record. Do you think that people would be willing to pay enough for this contract to allow the insurer to cover expected costs over...

An insurance company charges an annual premium of $75 for a $200,000 insurance policy against a...

An insurance company charges an annual premium of $75 for a $200,000 insurance policy against a house burning down. If the (empirical) probability that a house burns down in a given year is .0003, what is the expected value of the policy to the insurance company?

The ABC insurance INC. reports that the mean annual premium for automobile insurance in the United...

The ABC insurance INC. reports that the mean annual premium for automobile insurance in the United States was $1608 in summer 2018. However, you believed automobile insurance was cheaper in North Carolina and decided to develop statistical support for your opinion. A sample of 25 automobile insurance policies from the state of North Carolina showed a mean annual premium of $1560 with a standard deviation of s = $165. a. Develop a hypothesis test that can be used to determine...

List the four building blocks of an insurance premium. Why are investment earnings included in the...

List the four building blocks of an insurance premium. Why are investment earnings included in the calculations?

Question