To Determine the ALE of a Particular Risk, Which of the Following

question 1013

Multiple Choice

To determine the ALE of a particular risk, which of the following must be calculated? (Choose two.)

• A) ARO
• B) ROI
• C) RPO
• D) SLE
• E) RTO

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Definitions:

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Direct Materials Cost

The cost of raw materials that are directly used in the manufacture of a product and are easily traceable to it.

Total Overhead Applied

The total amount of manufacturing overhead costs allocated to individual jobs or products based on a predetermined overhead rate.

Direct Labor Rate

The cost per hour for labor directly involved in the production of goods or services.