Which of the Following Is NOT a Systematic Risk

question 78

Multiple Choice

Which of the following is NOT a systematic risk?

• A)The risk that oil prices rise,increasing production costs
• B)The risk that the Federal Reserve raises interest rates
• C)The risk that the economy slows,reducing demand for your firm's products
• D)The risk that your new product will not receive regulatory approval

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Definitions:

Direct Materials Cost

The cost of raw materials that are directly traceable to the production of a specific product or service.

Manufacturing Overhead

All manufacturing costs other than those accounted for as direct labor and direct materials. Includes indirect costs such as maintenance, utilities, and rent in the production process.

Indirect Materials

Materials used in the production process that cannot be directly linked to specific products, such as lubricants and cleaning supplies.

Direct Materials Cost

The cost of raw materials and components used directly in the manufacturing of a product.