A Favorable Variance Should Be Ignored by Management

question 63

True/False

A favorable variance should be ignored by management.

---

Definitions:

Insurance Contracts

Legal agreements between an insurance company and a policyholder that define the claims which the insurer is legally required to pay.

Avoid Liability

Strategies or actions taken by an individual or entity to minimize or evade legal responsibility and potential damages.

Tangible Property

Physical assets that can be seen, touched, and valued, such as land, buildings, vehicles, and other items with physical presence.

Intangible Property

Refers to non-physical assets that hold value, such as intellectual property, trademarks, and copyrights.