8. As its next step, the team gathers information in Table 5 and calculates a rate...

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8. As its next step, the team gathers information in Table 5 and calculates a rate for each of the functions based on the associated volumes. Use the information in Table 5 to calculate cost rates for the functions identified. Is this information sufficient for decision making? Why or why not? Referring back to his discussion with the chief actuary, Greg identifies two activities to begin developing activity- based costs: the cost to issue life insurance products and the cost to service them. The project team defines the activities encompassing the cost to issue a policy as the cost to receive and process applications, underwrite policies and print, and collate and mail policies (termed "issuance"). The cost to maintain policies is defined as the cost of storing policy information, updating policy information as needed, responding to requests for service on insurance policies, the payment of claims and benefits, and the associated computer costs. 8. As its next step, the team gathers information in Table 5 and calculates a rate for each of the functions based on the associated volumes. Use the information in Table 5 to calculate cost rates for the functions identified. Is this information sufficient for decision making? Why or why not? Referring back to his discussion with the chief actuary, Greg identifies two activities to begin developing activity- based costs: the cost to issue life insurance products and the cost to service them. The project team defines the activities encompassing the cost to issue a policy as the cost to receive and process applications, underwrite policies and print, and collate and mail policies (termed "issuance"). The cost to maintain policies is defined as the cost of storing policy information, updating policy information as needed, responding to requests for service on insurance policies, the payment of claims and benefits, and the associated computer costs.