Inherent Risk Includes Sampling Risk and Detection Risk

question 32

True/False

Inherent risk includes sampling risk and detection risk.

---

Definitions:

Size-Related

Anything pertaining to or dependent on the size or scale of an object, situation, or entity.

Order-Related

Costs or activities that are directly associated with specific orders or batches of product rather than general business operations.

Raw Ingredients

Basic and unprocessed materials used as inputs in the production of goods, particularly in food manufacturing or chemical processes.

Time-Based Activity-Based Costing

An enhanced form of activity-based costing that assigns costs based on the actual time spent on activities, providing more precise cost information for decision making.