Which Is an Example of Environmental Stochasticity

question 59

Multiple Choice

Which is an example of environmental stochasticity?
I. changes in the weather that increase or decrease survival by a small amount
II. variation in individual health that affects likelihood of death
III. forest fires that kill large numbers of individuals every 10 to 50 years

• A) I only
• B) II only
• C) III only
• D) I and III only
• E) I, II and III

Learn how to determine manufacturing overhead applied to jobs and the computation of unit product costs.

Understand the principle of calculating the cost of unused capacity and how it affects the costing system.

Develop an understanding of how job-order costing systems compute manufacturing overhead and apply it to jobs.

Gain insights into the preparation of income statements under a job-order costing system and the impact of cost of unused capacity.

---

Definitions:

Defined Contribution Plan

A type of retirement plan where employers, employees, or both make regular contributions, and the final benefits received depend on the investment's performance.

Standard Deviation

A measure of the dispersion or variability around the mean of a set of data points, often used to quantify risk in finance.

Defined Contribution Plan

A retirement plan where the amount of the retirement benefits is determined by the contributions to the plan and the performance of the investments.