Which of the Following Is NOT a Major Objective of Allocation

question 37

Multiple Choice

Which of the following is NOT a major objective of allocation as identified by the IMA?

• A) to value inventory
• B) to obtain a mutually agreeable price
• C) to compute product-line profitability
• D) to detect fraud

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Definitions:

Unsystematic Risk

The type of risk that is specific to a company or industry, stemming from factors like management decisions or regulatory changes, and can be mitigated through diversification.

Limited Number

A restricted quantity, usually referring to a specific allocation or issuance of items, resources, or opportunities.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, used in statistics to quantify the amount of variation or dispersion of a dataset.

Total Risk

The complete spectrum of all types of risk that an investment or project might face, including both systematic and unsystematic risks.