The Annualized Loss Expectancy in the CBA Formula Is Determined

question 11

Multiple Choice

The Annualized Loss Expectancy in the CBA formula is determined as ____.

• A) ALE * ARO
• B) SLE * ARO
• C) ACS - SLE(post)
• D) AV * EF

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Definitions:

Labor Hour

A measurement of work output or productivity calculated as the amount of labor input in terms of hours expended.

Time and Materials Pricing

A pricing strategy where the customer pays for the time spent on a project and the materials used, commonly used in service and contracting industries.

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of business activity or production volume, such as raw materials and direct labor.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products.