Question

What is the purpose of the budget committee in an insurance company?

a.

To limit the scope of budgetary control

b.

To disregard the formation of budget center

c.

To analyze variances

d.

To facilitate the introduction and implementation of a budgetary control system

Posted under IC 89 Management Accounting

Answer: (d).To facilitate the introduction and implementation of a budgetary control system Explanation:The budget committee generally consists of senior members of the organization and is involved in facilitating the introduction and implementation of a budgetary control system.

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Q. What is the purpose of the budget committee in an insurance company?
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