Risk That Affects at Most a Small Number of Assets

question 29

Multiple Choice

Risk that affects at most a small number of assets is called ________ risk.

• A)portfolio
• B)nondiversifiable
• C)market
• D)unsystematic
• E)total

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to produced units based on the amount of work completed.

Conversion Cost

The sum of direct labor and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.

Equivalent Units

A concept used in cost accounting to convert units of production into an amount of completed units to measure progress.

Conversion Costs

Costs specifically associated with converting raw materials into finished goods, which include labor and overhead.