When Analysing a Risk, We Look At

question 9

Multiple Choice

When analysing a risk, we look at:

• A) Likelihood
• B) Likelihood and consequence
• C) Consequence
• D) Control measures and treatments

Analyze and calculate raw materials usage based on inventory data.

Understand and calculate the allocation of underapplied or overapplied manufacturing overhead.

Determine the predetermined overhead rate based on direct labor-hours and manufacturing costs.

Understand the concept of work in process inventory adjustments due to manufacturing overhead application.

---

Definitions:

Accounting Equation

A fundamental principle of accounting that maintains that assets are always equal to the sum of liabilities plus equity (Assets = Liabilities + Equity).

Accounting Equation

The accounting equation represents the relationship between a company's assets, liabilities, and equity, illustrating that assets are funded by borrowing (liabilities) or investing (equity).

Stock Issuances

The process of making new shares available for sale to investors, often used by companies to raise capital.

Accounting Equation

The foundational equation of double-entry bookkeeping, stating that Assets = Liabilities + Equity, ensuring the balance sheet remains balanced.