Farmers Insurance Company Had a Static Budgeted Operating Income of $8.6

question 88

Multiple Choice

Farmers Insurance Company had a static budgeted operating income of $8.6 million.Actual operating income was $6.4 million.What is the static-budget variance of operating income?

• A)$2.2 million Favorable
• B)$2.2 million Unfavorable
• C)$6.4 million Favorable
• D)$8.6 million Unfavorable

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Definitions:

Face-To-Face Communication

Direct interaction between individuals, allowing for immediate feedback and personal interaction.

Written Communication

The process of conveying information or ideas through the written word.

Organizational Culture

The set of shared values, beliefs, and practices that characterize how a company’s employees behave and interact.

External Adaptation

The process by which an organization adjusts and changes in response to the external environment.