Which One of These Is the Best Example of Systematic

question 52

Multiple Choice

Which one of these is the best example of systematic risk?

• A)Discovery of a major gas field
• B)Decrease in textile imports
• C)Increase in agricultural exports
• D)Decrease in gross domestic product
• E)Decrease in management bonuses for banking executives

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Definitions:

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all inventory items.

Overhead Costs

Indirect costs incurred in the running of a business that cannot be directly attributed to any specific product or service.

Process Costing System

A method of costing used where identical or similar items are produced in mass, costs are accumulated for a fixed period and assigned to all units produced.

FIFO Method

"First In, First Out" inventory valuation method where goods purchased or produced first are sold or used first.