An organization has decided to hedge raw materials with highly volatile prices. This is an example of Risk acceptance Risk reduction Risk avoidance Risk sharing

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 10DQ: Explain how long-term contractual relationships with suppliers can reduce the acquisition cost of...
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An organization has decided to hedge raw materials with highly volatile prices. This is an example of
Risk acceptance
Risk reduction
Risk avoidance
Risk sharing
Transcribed Image Text:An organization has decided to hedge raw materials with highly volatile prices. This is an example of Risk acceptance Risk reduction Risk avoidance Risk sharing
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