For Identified Risks, Management

question 104

Multiple Choice

For identified risks, management

• A) assesses the likelihood of their occurrence.
• B) decides upon actions to manage them.
• C) estimates their significance.
• D) all of the above

---

Definitions:

Product-level Activity

Activities or costs in cost accounting that are directly tied to specific products, including design and setup costs.

Unit-level Activity

Tasks or operations that vary with the number of units produced, such as assembling or packaging.

Resource Consumption

The amount of resources used during a process, such as raw materials, energy, or labor.

Activity Rate

The cost incurred per unit of activity, used in activity-based costing to allocate overhead costs to products.