A Favorable Variance

question 27

Multiple Choice

A favorable variance

• A) is an indication that the company is not operating in an optimal manner.
• B) implies a positive result if quality control standards are met.
• C) implies a positive result if standards are flexible.
• D) means that standards are too loosely specified.

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Definitions:

Insurance Proceeds

The money received from an insurance claim, paid out by the insurance company to the policyholder or beneficiary.

Fraud on the Creditor

An act of deceit intended to keep assets from being claimed by creditors.

Life Insurance Policy

A contract between an insurer and a policyholder in which the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Insurance Agent

A professional authorized to sell and manage insurance policies on behalf of insurance companies.