Risk Is

question 78

Multiple Choice

Risk is:

• A)Net income divided by average total assets.
• B)The reward for investment.
• C)The uncertainty about the expected return that will be earned from an investment.
• D)Unrelated to expected return.
• E)Derived from the idea of getting something back from an investment.

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Definitions:

Factory Payroll

The total compensation, including wages, salaries, and benefits, paid to employees working within a manufacturing facility.

Direct Labor

Refers to the wages and benefits given to employees who are directly involved in the production of goods or services.

Overapplied Overhead

A situation where the allocated overhead cost to products or services exceeds the actual overhead costs incurred.

Underapplied Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.