The Function of Analyzing and Evaluating All of the Risks

question 20

Multiple Choice

The function of analyzing and evaluating all of the risks that affect an organization is called _____.

• A) enterprise risk management
• B) litigation support
• C) quality review
• D) root-cause analysis

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Definitions:

Control Perspective

An approach focusing on the monitoring and adjusting of processes and strategies to achieve desired outcomes or objectives.

Revenue Variance

The difference between how much the revenue should have been, given the actual level of activity, and the actual revenue for the period. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.

Cost Variance

The difference between the expected cost of a project or production process and the actual cost incurred.

Labour Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected to produce a certain level of output.