Standard Deviation Measures _____ Risk While Beta Measures _____ Risk

question 91

Multiple Choice

Standard deviation measures _____ risk while beta measures _____ risk.

• A)systematic; unsystematic
• B)unsystematic; systematic
• C)total; unsystematic
• D)total; systematic
• E)asset-specific; market

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Definitions:

Direct Material

Raw materials that can be directly associated with the production of a specific product.

Predetermined Overhead Rate

An estimated rate used to apply manufacturing overhead to products or cost objects, calculated before the period begins based on forecasted costs and activity levels.

Estimated Labor-Hours

An approximation of the total hours of labor that will be required for a specific project or production period.

Variable Manufacturing Overhead

Costs in manufacturing that vary directly with levels of production, such as materials and labor directly involved in production.