An insurance premium is $18,600 per year. What monthly accrual should be budgeted if spread evenly?
Correct Answer
A) $1,550.
Monthly accrual is the annual premium divided by 12: $18,600 / 12 = $1,550.
Why This Is the Correct Answer
Monthly accrual is the annual premium divided by 12: $18,600 / 12 = $1,550.
Why the Other Options Are Wrong
Option B: $1,450.
$1,450. is below the supported result for insurance cost calculation; it likely skips a premium-pay or employer-cost component.
Option C: $1,650.
$1,650. is above the supported result for insurance cost calculation; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $1,860.
$1,860. is above the supported result for insurance cost calculation; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Who controlled monthly, who paid accrual, where is the Budgeting Month record?
Reference Hint
Study anchor (closed-book): memorize Insurance cost calculation from CSLB 2026 Law Book; CSLB workers' compensation guidance; California. / CSLB Law Book insurance and business finance study concepts; know the rule or calculation trigger without relying on exam-room lookup.
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