The Construction Foreman Posted a Large Sign Requiring All Work

question 1

Multiple Choice

The construction foreman posted a large sign requiring all work site visitors to don a hard hat and safety glasses.He also purchased copious quantities of both items and made them readily available at the entrance.The foreman is engaged in:

• A)Risk identification.
• B)Risk mitigation.
• C)Analysis of probability and consequences.
• D)Control and documentation.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use, rather than selling them for a profit elsewhere.

Economic Costs

The total value of all resources used in the production of goods or services, including both explicit and implicit costs.

Opportunity Costs

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Accounting Profit

The difference between total revenue and explicit costs, indicating the financial gain recorded in the books of accounts.