Risk and Materiality Are Related; Risk Is a Measure of Uncertainty

question 17

True/False

Risk and materiality are related; risk is a measure of uncertainty where materiality measures magnitude.

---

Definitions:

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.

Accumulation

The process of gradually gathering or increasing amounts of something over time.

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.

Vendor-Managed Inventory

A replenishment strategy where the supplier is responsible for maintaining the inventory levels of their products at the customer's location.