Actual and Budgeted Costs - Speech or Presentation Example

The budgeted cost is to communicate the objectives and expectations of the organization, whereas the actual costs indicate the performance of the organization with respect to the budgeted values.In financial terms, firewall refers to the regulatory legal barriers placed by the Glass – Steagall Act 1933 which attempted to prevent the transfer of inside information and performance of financial transactions between commercial and investment banks (Darwish & Evanoff, 2007).The regulatory firewall between the commercial and investment banking activities indicated that commercial banks should curb their investment activities and that the income from investments should not be over 10%.

These rules were extended and the Bank Holding Act came into practice in 1956 which separated the banking and the insurance sector. The banks were allowed to sell insurance, but they were not authorized to underwrite insurances. This acted as a firewall between the banking and the insurance sector.The firewall was initiated as it was found that the commercial banks were involved in the stock market to a great extent and were thus putting the deposits received from customers at great risk. Also, it was one of the reasons for the early stock market crash.