Question

What is the purpose of the periodical review of the budget in insurance companies?

a.

To ignore the corrective actions

b.

To determine final results without any review

c.

To fix responsibility for variances

d.

To avoid the analysis of revenue and results

Posted under IC 89 Management Accounting

Answer: (c).To fix responsibility for variances Explanation:Periodical review of the budget in insurance companies aims to determine corrective actions and fix responsibility for variances.

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Q. What is the purpose of the periodical review of the budget in insurance companies?
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