The Two Basic Types of Risk That People Face Regarding

question 49

Multiple Choice

The two basic types of risk that people face regarding potential property losses are

• A) Basic and criminal.
• B) Physical damage and destruction.
• C) Destruction and basic.
• D) Physical damage and damage caused by criminal behavior.
• E) Negligence and criminal behavior.

Analyze the impact of practical standards on manager attitudes and commitment.

Identify potential negative outcomes of incentive systems based on meeting predetermined standards.

Recognize the importance and methods of setting standards, including benchmarking and time and motion studies.

Grasp the role and calculation of standard costs in production, including material and labor variances.

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Definitions:

First-stage Allocation

The process in cost accounting of assigning overhead costs to various cost pools before they are allocated to products or services.

Activity-based Costing

This costing method assigns overhead and indirect costs to specific activities, providing more accurate insights into the actual costs of production or service delivery.

Resource Consumption

The amount of resources used by an activity, process, or production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.