If You Lower the Probability of Loss by Taking Preventive

question 151

Multiple Choice

If you lower the probability of loss by taking preventive action you are engaging in which one of the following risk management strategies?

• A)Risk avoidance
• B)Risk reduction
• C)Risk retention
• D)Risk transfer

Identify and differentiate between direct materials, direct labor, and factory overhead costs.

Prepare and analyze general journal entries related to production activities.

Compute the cost of goods completed and transferred to finished goods.

Reconcile total costs to account for in process cost summaries.

---

Definitions:

Antitrust Lawsuits

Legal actions initiated to challenge practices or agreements that are deemed to restrict free trade and competition in the marketplace.

Vertically Integrated

A business model in which a company controls multiple stages of production or distribution within the same industry.

HUAC Inquiries

Investigations conducted by the House Un-American Activities Committee, especially during the mid-20th century, targeting suspected communists.

Un-American Activities

Activities deemed not in accordance with American values or interests, often associated with the House Un-American Activities Committee (HUAC) which investigated alleged disloyalty and subversive activities.