A Risk Management Process Is Which of the Following

question 38

Multiple Choice

A risk management process is which of the following?

• A) A means of avoiding problems
• B) A way to manage possibilities
• C) Includes a contingency plan
• D) A means of avoiding problems, a way to manage possibilities, and includes a contingency plan

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs like rent, utilities, and maintenance of equipment.

Selling and Administrative Expenses

These are indirect costs that are not directly tied to the production of goods or services, including sales personnel salaries, advertising, and office rent.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Administrative Costs

Expenses related to the general administration of a business, including salaries of executives, office supplies, and legal and accounting services.