Which of the following statements about variable life insurance is true?
A) Premium payments are flexible.
B) The death benefit cannot be higher or lower than a guaranteed, specified, value.
C) The policyowner has the option of investing the cash value in several investment accounts.
D) The cash surrender value of the policy is guaranteed.
Answer: C
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The beginning inventory costs and the product costs of the current period are combined to determine the average cost of equivalent units of production under the ________
A) equivalent units method B) conversion costs method C) first-in, first-out method D) weighted-average method
Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected:
Old Equipment New Equipment Purchase price $225,000 $375,000 Accumulated depreciation 90,000 - 0 - Annual operating costs 300,000 240,000 If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is a) $90,000 b) $(75,000) c) $60,000 d) $(15,000)