The Probability of a Loss Occurring Can Be Reduced by

question 51

Multiple Choice

The probability of a loss occurring can be reduced by

• A)risk observance.
• B)loss prevention.
• C)risk assumption.
• D)risk retention.
• E)insurance.

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Definitions:

Manufacturing Overhead

The indirect production costs that are not directly associated with the manufacturing of products, such as utilities and rent for the manufacturing facility.

Predetermined Overhead Rate

A computed rate used for applying overhead costs to products or job orders, calculated before the period begins based on estimated costs.

Machine-Hours

The total hours that machinery is operating during a specific period, often used for allocating manufacturing overhead costs.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production.