If Someone Says That an Idea Is "Only a Theory

question 39

Multiple Choice

If someone says that an idea is "only a theory" and implies that this means it can be dismissed, is this a valid viewpoint?

• A) The viewpoint is accurate because since science is based on interpretation it is not really trustworthy.
• B) The viewpoint is accurate because a theory is essentially just a guess.
• C) The viewpoint is incorrect because for an idea to become a theory it has withstood robust testing and is currently accepted.
• D) The viewpoint is incorrect because once an idea becomes a theory it can never be disproven.

Apply the concept of Equivalent Annual Cost (EAC) to compare mutually exclusive projects with different lives.

Understand the factors influencing location decisions for goods-producing firms versus service firms.

Grasp the methods and models used in location decisions, including break-even analysis, the transportation model, and the factor-rating method.

Recognize the importance of costs, including labor and transportation, in location decisions.

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Definitions:

Direct Manufacturing Cost

Expenses that are directly attributable to the production of goods, including materials and labor directly involved in the manufacture.

Period Costs

Expenses that are not directly tied to the production process and are instead charged to the period in which they are incurred.

Financial Reporting

Developing communications that display an organization’s monetary status to those in charge, investors, and the government.

Direct Manufacturing Cost

Costs directly associated with the production of goods, including raw materials and labor.