Factory Overhead Is Typically A(n)

question 70

Multiple Choice

Factory overhead is typically a(n) :

• A) mixed cost.
• B) fixed cost.
• C) variable cost.
• D) irrelevant cost.

---

Definitions:

Systematic Risk

Market or sector-wide risk, commonly called market risk, that remains despite attempts at diversification.

Unsystematic Risk

The risk associated with a specific company or industry, which can be reduced through diversification, unlike systematic risk which affects the entire market.

Portfolio Diversification

A strategy for managing risk that involves diversifying a portfolio with a broad range of investments to reduce the effect of the performance of any individual asset.

Security

A financial instrument that represents ownership (stocks), a creditor relationship (bonds), or rights to ownership (options) that can be bought and sold.