Question

Why is budgetary control considered essential for insurance companies?

a.

To complicate the organizational objectives

b.

To avoid regulatory compliance

c.

To make it difficult to reach organizational objectives

d.

To reach organizational objectives of growth, survival, profitability, solvency, and regulatory compliance

Posted under IC 89 Management Accounting

Answer: (d).To reach organizational objectives of growth, survival, profitability, solvency, and regulatory compliance Explanation:Without budgetary control, insurance companies find it very difficult to reach organizational objectives of growth, survival, profitability, solvency, and regulatory compliance.

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Q. Why is budgetary control considered essential for insurance companies?
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