General Insurance Company Had a Static Budgeted Operating Income of $4.6

question 176

Multiple Choice

General Insurance Company had a static budgeted operating income of $4.6 million; however, actual income was $3.0 million.What is the static budget variance of operating income?

• A)$1,000,000 favourable
• B)$1,000,000 unfavourable
• C)$1,600,000 favourable
• D)$3,000,000 favourable
• E)$1,600,000 unfavourable

---

Definitions:

Free-Agent Economy

An economic system where individuals act as independent contractors or freelancers, rather than being committed to a single, long-term employer.

Independent Contracts

Refers to agreements or arrangements where individuals or entities provide services to another entity as non-employees, typically governed by contractual terms.

Shifting Mix

Changing the combination or proportion of elements within a group, portfolio, or formula to achieve a desired outcome or balance.

Broad Purpose

A wide-ranging or general aim that an organization or individual seeks to achieve, often encompassing various specific objectives.