Which of the Following Statements Most Accurately Describes the Relative

question 19

Multiple Choice

Which of the following statements most accurately describes the relative "risk" of getting a sliver in your finger versus a volcanic eruption in the Pacific Northwest?

• A)The relative "risk" is difficult to assess because,even though getting the sliver is much more likely,the volcanic eruption would be much more severe.
• B)Getting a sliver in your finger is much more likely and so has the higher risk.
• C)A volcanic eruption in the Pacific Northwest is much more likely and so has the higher risk.
• D)The relative risk is roughly equal because both events are roughly equally likely,and both would be roughly equally severe.

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Definitions:

Direct Materials

Raw materials that are traceable to the manufacturing of a product and are an integral part of the finished product.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimated costs and activity levels.

Direct Materials Used

Direct Materials Used are raw materials that are directly incorporated into a finished product and are a major part of manufacturing costs.

Selling Expenses

Costs incurred directly and indirectly in selling and distributing a product or service, including advertising, sales salaries, and commission.