Which of the Following Is Not a Component of Risk

question 17

Multiple Choice

Which of the following is not a component of risk?

• A) Acceptable Detection Risk.
• B) Audit Risk.
• C) Inherent Risk.
• D) Control Risk.

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Definitions:

Labour Hours

Labour hours refer to the total number of hours worked by employees, typically used to measure workforce output or allocate direct labor costs in manufacturing.

Materials Quantity Variance

This measures the difference between the actual amount of materials used in production and the standard amount expected to be used, based on the level of output.

Standard Quantity

The benchmark or predetermined amount of materials expected to be used in the production of a good or service.

Actual Materials

The physical and actual quantities of materials used in the production process.