377. Offering cash discount to customers result in _______.

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reducing the average collection period
increasing the average collection period
increasing sales
decreasing sales
✅ The correct answer is A.
Offering cash discount to customers result in reducing the average collection period. A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.

374. With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of

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Gross premiums
Single premiums
Advance premiums
Level premiums
✅ The correct answer is D.
With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of Level premiums. Level-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases.

371. Which of the below is not an advantage of cash value insurance contracts?

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Safe and secure investment
Inculcates saving discipline
Lower yields
I.T. advantages
✅ The correct answer is C.
Lower yields is not an advantage of cash value insurance contracts. Cash value insurance is permanent life insurance because it provides coverage for the policyholder’s life. Traditionally, cash value insurance has higher premiums than term insurance because of the cash value element.

368. If a general manager asks the sales manager to recruit some salesman on his behalf, it is an instance of ___________.

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Division of authority
Decentralisation of authority
Delegation of authority
Delegation of responsibility
✅ The correct answer is C.
If a general manager asks the sales manager to recruit some salesman on his behalf, it is an instance of Delegation of authority. Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.

363. Type of relationship stating “how changes in cost driver drives cause changes in cost” will be termed as

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marginal plausibility
economic plausibility
financial plausibility
market plausibility
✅ The correct answer is B.
Type of relationship stating “how changes in cost driver drives cause changes in cost” will be termed as economic plausibility. There is a positive relationship between the number of service reports (a cost driver) and the customer- service department costs.

361. Cash flows that should be considered for decision in hand are classified as

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relevant cash flows
irrelevant cash flows
marginal cash flows
transaction cash flows
✅ The correct answer is A.
Cash flows that should be considered for decision in hand are classified as relevant cash flows. It states that they must be cash flows that occur in the future and are incremental. While on the face of it obvious, only costs or revenues that give rise to a cash flow should be included.