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2630. An example of shrinkage costs is

incoming freight

storage costs

insurance

clerical errors

✅ The correct answer is D.
An example of shrinkage costs is clerical errors. Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage in transit or in store, and cashier errors that benefit the customer.

2631. It would be advantageous to go for a family floater rather than non-floater due to the reason that

Higher cover would help any family member in case of high cost treatment

Premiums are considerably lower than where cover is taken for individual members

Both A & B

None of the three

✅ The correct answer is C.
It would be advantageous to go for a family floater rather than non-floater due to the reason that higher cover would help any family member in case of high cost treatment and premiums are considerably lower than where cover is taken for individual members.

2633. A capital intensive enterprise requires __________.

more employees

less employees

male employees

female employees

✅ The correct answer is B.
A capital intensive enterprise requires less employees. Capital intensive refers to business processes or industries that require large amounts of investment to produce a good or service, and therefore have a high percentage of fixed assets (property, plant, and equipment (PP&E)).

2635. Cost of contract and profit or loss thereon are determined by preparing ________.

cost sheet

profit and loss a/c

trading a/c

separate ledger a/c

✅ The correct answer is D.
Cost of contract and profit or loss thereon are determined by preparing separate ledger a/c. A separate contract account is prepared for each contract.

2636. Revival of a policy is not a _________ right of the insured.

Conditional

Unconditional

Legal

Fundamental

✅ The correct answer is B.
Revival of a policy is not a unconditional right of the insured.

2638. Which of the below statement is true regarding ULIP’s?

Value of the units is determined by a formula fixed in advance

Investment risk is borne by the insurer

ULIP’s are opaque with regards to their term, expenses and savings components

ULIP’s are bundled products

✅ The correct answer is C.
ULIP’s are transparent with regards to their term, expenses and savings components. The value of each unit of a fund is determined by dividing the total value of the fund’s investments by the total number of units.

2606. Material or anything for which cost is to be measured is known as

measurement object

cost object

accounting object

budget object

✅ The correct answer is B.
Material or anything for which cost is to be measured is known as cost object. A cost object is any item for which costs are being separately measured. It is a key concept used in managing the costs of a business.

2608. Department which directly adds value to product or service is known as

production department

operating department

allocation base department

both a and b

✅ The correct answer is D.
Department which directly adds value to product or service is known as production department and operating department.

2611. Which one is an encryption technique?

RSA

DES

AES

All of the above

✅ The correct answer is D.
RSA, DES and AES are encryption technique.

2613. An expected future revenue, which diverges in unconventional course of action is classified as

partial revenue

total revenue

relevant revenues

irrelevant revenues

✅ The correct answer is C.
An expected future revenue, which diverges in unconventional course of action is classified as relevant revenues. Relevant means that you consider future revenue and expenses.

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