One Measure of T He Risk of an Asset May

question 122

True/False

One measure of t he risk of an asset may be found by subtracting the worst outcome from the best outcome.

---

Definitions:

Standard Price

The predetermined cost of a single unit of input, such as materials or labor, used in standard costing practices.

Direct Labour

The labor costs for employees directly involved in the production of goods or services.

Actual Hours

The real number of hours worked, as opposed to the planned or standard hours set for a job or task.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (or standard) cost, multiplied by the quantity of materials purchased.