Unsystematic Risk Can Be Defined As

question 8

Multiple Choice

Unsystematic risk can be defined as:

• A) the total risk to the firm.
• B) the risk of the individual security.
• C) the added risk that a firm's shares bring to a diversified portfolio.
• D) the risk of the market in general.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods within a specific period, including materials, labor, and overhead.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor incurred to produce goods, including utilities, depreciation, and maintenance of equipment.

Underapplied

A situation in cost accounting where the allocated manufacturing overhead costs are less than the actual overhead expenses incurred.