Which of the Following Is an Example of Systematic Risk

question 101

Multiple Choice

Which of the following is an example of systematic risk?

• A) the death of a firm's key scientist.
• B) a hail storm in Northern Alberta
• C) the geopolitical uncertainty in the Middle East
• D) a fire at a fish processing plant in Newfoundland

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Definitions:

Predetermined Overhead Rate

A calculated rate used in cost accounting to allocate overhead costs to products or services, based on estimated overhead costs and activity levels.

Direct Labour Hours

The total hours worked by employees who are directly involved in the production process of a company.

Underapplied Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Direct Labour Cost

The total cost of all the labor force that is directly involved in the manufacturing of a product or the provision of a service.