Match the Term with Its Definition

question 57

Multiple Choice

Match the term with its definition.
-Buying insurance or making contractual arrangements that transfer risk to others

• A)personal property
• B)proximate cause
• C)real property
• D)risk control
• E)risk financing
• F)risk management
• G)risk retention
• H)risk transfer
• I)self-insurance
• J)torts

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Definitions:

Absorption Costing

A system in accounting that compiles all the expenses tied to production, such as direct material costs, direct labor payments, and both styles of manufacturing overhead, fixed and variable, and applies them to the price of a product.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent for the manufacturing facility or salaries of permanent staff.

Common Fixed Expenses

Costs that are shared across different segments or departments of a business and do not vary with the level of production or sales.

On-Site Supervisor

An individual responsible for overseeing and managing workers or operations at a specific physical location.