To Earn a ________ Return,you Must Incur ________ Risk

question 32

Multiple Choice

To earn a ________ return,you must incur ________ risk.

• A) lower; higher
• B) higher; higher
• C) decent; very high
• D) higher; lower
• E) None of the above.

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Definitions:

Product Costs

Costs directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Current Profits

The earnings a company has generated during a particular period, not taking into account future liabilities or investments.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead expenses.

Cost Per Unit

The calculation of the total cost of producing a product or providing a service divided by the number of units produced or serviced.