Which of the Following Statements Is True of Formal Reasoning

question 76

Multiple Choice

Which of the following statements is true of formal reasoning?

• A) In formal reasoning, the information needed for drawing a conclusion or reaching a solution is specified clearly.
• B) In formal reasoning, many approaches, viewpoints, or possible solutions may compete, and you may have to decide which one is most "reasonable."
• C) Formal reasoning involves dialectical reasoning.
• D) Formal reasoning uses heuristics, or rules of thumb, to try to reach a solution.

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Definitions:

Direct Labour Hours

A measure of the amount of time workers spend directly manufacturing a product, which is often used to allocate manufacturing overhead in product costing.

Standard Costing System

An accounting method that uses estimated costs for planning and decision-making purposes.

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard rates.

Standard Costing System

A cost accounting method that assigns expected costs to products, services, or cost units, used for budgeting and performance evaluation.