Risks Are Sometimes Unavoidable and Acceptable, as Long As

question 6

Multiple Choice

Risks are sometimes unavoidable and acceptable, as long as:

• A) Employees are not coerced
• B) Employees are fully compensated for assuming them and they do so freely and knowingly
• C) No one else has the expertise to do the work
• D) All the above

---

Definitions:

Units Produced

The total quantity of items manufactured by a company during a specific period.

Absorption Costing

An accounting method that includes all manufacturing costs, direct and indirect, in the unit cost of a product.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.