When Chess Experts Were Shown a Chess Board and Asked

question 107

Multiple Choice

When chess experts were shown a chess board and asked to recall the pieces, they

• A) recalled more poorly than novices; apparently their expertise got in the way.
• B) remembered better than novices whether the pieces were arranged as in a game or randomly.
• C) remembered more poorly than novices if the pieces were arranged as in a game, but better if they were arranged randomly.
• D) remembered better than novices if the pieces were arranged as in a game, but about the same if they were arranged randomly.

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Definitions:

LIFO

An inventory cost methodology assuming the most recently added items to the inventory are sold first, short for "Last-In, First-Out."

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold.

Increasing Costs

Increasing Costs refer to a scenario where a company experiences a rise in the price of inputs or operational expenses over time, which can affect profitability.

Lower of Cost or Market

An accounting principle that values inventory at the lesser of its historical cost or current market value, used to ensure assets are not overstated.