848. On foreclosure of a policy, which of the following is incorrect?

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Nothing is payable to the policyholder
Excess amount (subsisting cash value after deducting loan/interest) is payable
Notice has to be given to the policyholder by the insurer
None of the above
✅ The correct answer is A.
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan. On foreclosure of a policy, nothing is payable to the policyholder.

847. Variable cost per unit ________.

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varies when output varies
remains constant
increase when output increases
decreases when output decreases
✅ The correct answer is B.
Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.

74. Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?

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Replacement cost method
Standard cost method
AVCO or average cost
FIFO method
✅ The correct answer is B.
Under Standard cost method of inventory costing, a pre-determined cost is assigned to all items of inventory. A standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or as the “should be” cost. Standard costs are often an integral part of a manufacturer’s annual profit plan and operating budgets.

845. Under special revival which is correct?

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It is as though a new policy is issued by altering DOC
The maturity date also gets altered
Difference between old and new premium is payable
All of the above
✅ The correct answer is D.
All the above are correct under special revival.
It is as though a new policy is issued by altering DOC, The maturity date also gets altered and difference between old and new premium is payable.

844. Merricks multiple piece rate system has _______.

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two rates
three rates
four rates
five rates
✅ The correct answer is B.
Merricks multiple piece rate system has three rates. According to this plan, three piece rates for a job is fixed. None of these three piece rates are fixed below the normal level. These three rates are applied in the manner given below:
Rates Bonus Incentive
1. Upto 83 ‘/3% Normal Rate
2. Above 83 1/3 % to 100% 110% of Normal Rate
3. Above 110% 120% of Normal Rate

843. Cost function, in which cost does not change with any change in level of activity is a part of

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step price functions
step object functions
step constant functions
step cost functions
✅ The correct answer is D.
Cost function, in which cost does not change with any change in level of activity is a part of step cost functions. A step cost is a cost that does not change steadily with changes in activity volume, but rather at discrete points.

840. Why Pensions are said to represent the flip side of life insurance?

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Life insurance provides protection against premature death whereas pension covers the contingency of living too long
In life insurance premium payments result in creation of sum assureIn case of pensions, the corpus gets liquidated by regular income payments
Both A & B
None of the above
✅ The correct answer is C.
Pensions are said to represent the flip side of life insurance because Life insurance provides protection against premature death whereas pension covers the contingency of living too long and In life insurance premium payments result in creation of sum assured. In case of pensions, the corpus gets liquidated by regular income payments.

856. “It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “

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8,788 units
11,600 units
11,885 units
12,397 units
✅ The correct answer is C.