Annual insurance premium is $21,600. What monthly accrual should be budgeted if spread evenly?
Correct Answer
D) $1,800.
Monthly accrual is $21,600 divided by 12, which equals $1,800.
Why This Is the Correct Answer
Monthly accrual is $21,600 divided by 12, which equals $1,800.
Why the Other Options Are Wrong
Option A: $1,600.
$1,600. is below the supported result for insurance cost calculation; it likely skips a premium-pay or employer-cost component.
Option B: $1,700.
$1,700. is below the supported result for insurance cost calculation; it likely skips a premium-pay or employer-cost component.
Option C: $1,750.
$1,750. is below the supported result for insurance cost calculation; it likely skips a premium-pay or employer-cost component.
Memory Technique
Insurance Cost ladder for Budgeting Month: hours climb before dollars add up.
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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