Which of the Following Is Not a Risk Handling Technique

question 67

Multiple Choice

Which of the following is not a risk handling technique?

• A) Loss control
• B) Loss diversification
• C) Loss transfer
• D) Loss financing

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of specific goods or products.

Variable Overhead

Costs that fluctuate with production volume, such as electricity for manufacturing equipment, excluding fixed costs.

Excess Capacity

A situation where a company can produce more goods or provide more services than currently demanded, indicating unused productive potential.

Special Order

A one-time customer order often involving a large quantity and requiring a separate pricing or product specification arrangement.