The Risk That Errors Can Occur in Inputs to a Pricing

question 39

Multiple Choice

The risk that errors can occur in inputs to a pricing model is called

• A)input risk
• B)model risk
• C)pricing risk
• D)valuation risk
• E)none of the above

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Definitions:

FIFO

A cost flow assumption for inventory and financial accounting where the first goods purchased or produced are the first to be sold.

FIFO Inventory

An inventory costing method that assumes the items purchased or produced first are sold first, thereby remaining inventory consists of items added most recently.

Cash Transactions

Financial transactions involving the immediate payment of cash for the purchase of goods or services.