Examples in my notes usually provided scenarios withmanufacturing companies so finding costs is quite...

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Accounting

Examples in my notes usually provided scenarios withmanufacturing companies so finding costs is quite straight forward,like direct material costs etc.
Then my homework asked for costs examples in the context of aninsurance company and i got confused as insurance is not likemanufacturing where there are physical products.
Please help so i can get a better understanding on this.
and also what would be the cost objects in this case.
Thanks you so much.

Answer & Explanation Solved by verified expert

4.3 Ratings (630 Votes)

Insurance policy is a written commitment to pay an agreed amount to the insured forpayment of a fixed periodical amount called premuim to the insurance company For example premiums for a life insurance policy are based on two basic concepts iemortalityrisk of death is shared by a group of people the See Answer

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In: AccountingExamples in my notes usually provided scenarios withmanufacturing companies so finding costs is quite straight...Examples in my notes usually provided scenarios withmanufacturing companies so finding costs is quite straight forward,like direct material costs etc.Then my homework asked for costs examples in the context of aninsurance company and i got confused as insurance is not likemanufacturing where there are physical products.Please help so i can get a better understanding on this.and also what would be the cost objects in this case.Thanks you so much.