Which One of the Following Best Exemplifies Unsystematic Risk

question 9

Multiple Choice

Which one of the following best exemplifies unsystematic risk?

• A)Unexpected economic collapse
• B)Unexpected increase in interest rates
• C)Unexpected increase in the variable costs for a firm
• D)Sudden decrease in inflation
• E)Expected increase in tax rates

---

Definitions:

FIFO Method

"First In, First Out," an inventory valuation method assuming goods first purchased or produced are the first to be sold.

Perpetual Inventory System

An inventory system that tracks merchandise in real-time, updating inventory records immediately upon purchase or sale.

Periodic Inventory System

An inventory accounting system where updates to inventory levels and Cost of Goods Sold are made at set intervals.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.