Discuss What We Mean by Chance Variation in a Process

question 126

Essay

Discuss what we mean by chance variation in a process and give an example.

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Definitions:

Reasonably Possible

A term used in accounting and law to indicate that a future event or condition has a chance of occurring.

Liability

A company's financial debt or obligations that arise during the course of its business operations.

Probable Loss

An estimated loss from a contingent liability that is likely to occur and can be reasonably estimated.

Reasonably Possible

Describes a level of likelihood that something might occur, under consideration in areas like assessments of contingent liabilities.