When a Risk Is Evaluated in Terms of How Much

question 15

Multiple Choice

When a risk is evaluated in terms of how much it could affect a company's ability to operate,the risk is being assessed in terms of:

• A)probability.
• B)cost.
• C)actuality.
• D)severity.

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Definitions:

Break-even

A financial analysis point where a company's revenue exactly matches its expenses, resulting in neither profit nor loss.

Monthly Dollar Sales

The total revenue generated from sales in a particular month, measured in dollars.

Unit Variable Cost

The variable cost incurred to produce one unit of product, including direct materials, direct labor, and variable manufacturing overhead.

Monthly Sales

The total revenue generated from the sales of products or services within a month.