Which One of the Following Is NOT a Means of Reducing

question 33

Multiple Choice

Which one of the following is NOT a means of reducing information risk?

• A) Implementing a system of quality control
• B) Sharing the risk with management
• C) Providing audited financial statements
• D) Independent verification by the user

---

Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Variable Production Cost

Costs that fluctuate with the production volume, including variable manufacturing overhead, direct materials, and direct labor.

Fixed Production Cost

Costs that do not vary with the level of output, such as salaries, rent, and depreciation of production facilities.