Which One of the Following Is the Type of Risk

question 84

Multiple Choice

Which one of the following is the type of risk that only affects either a single firm or just a small number of firms?

• A) unexpected
• B) market
• C) systematic
• D) unsystematic
• E) expected

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Definitions:

Standard Costs

Predetermined costs for manufacturing a product or service, used as a benchmark to measure the actual costs of production.

Product Specifications

Detailed descriptions of a product's characteristics, materials, and performance criteria, setting the standards for production and quality.

Union Contract

A legal agreement between a labor union and an employer that outlines the terms of employment, including wages, working hours, work conditions, and grievance procedures.

Direct Labor Time Variance

The difference between the actual time taken to manufacture a product and the standard time expected, multiplied by the hourly wage rate.