Match the Term with Its Definition

question 102

Multiple Choice

Match the term with its definition.
-Making funds available to cover losses that cannot be eliminated by risk control

• 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:

Board Feet

A unit of measure for lumber, representing a volume of 144 cubic inches, equivalent to a board that is one foot long, one foot wide, and one inch thick.

Quantity Variance

The difference between the actual quantity of materials or labor used in a process and the expected amount, which affects overall production costs.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and are a significant portion of the production cost.

Standard Quantity

The expected amount of materials or inputs required to produce a unit of product under normal operating conditions.