Operational Risk Sources Can Lead to the Following Costs for the FI

question 56

Multiple Choice

Operational risk sources can lead to the following costs for the FI:

• A)direct costs, indirect costs and opportunity costs
• B)direct costs and indirect costs only
• C)direct costs and opportunity costs only
• D)indirect costs and opportunity costs only

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Definitions:

Variable Cost Per Unit

The cost that varies with the level of output or activities, calculated on a per-unit basis.

Units Sold

The total quantity of products sold by a business during a specific period.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period in which they occur, such as selling, general, and administrative expenses.

Financial Reporting

The process of disclosing financial information and data about a company's financial performance, position, and cash flows to stakeholders and the public.