The Risk Associated with Inefficient Use of Inputs or Over-Provision

question 6

Multiple Choice

The risk associated with inefficient use of inputs or over-provision of services is

• A) An actuarial risk
• B) A utilization risk
• C) A cost risk
• D) A financial risk

---

Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Depreciation Expense

Segmenting the cost related to a physical asset through its active life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing how much of the asset's value has been used up.

Balances

The figures that represent the difference between the sum of debits and credits in an account.