What Is Most Likely to Be the Intended Connecting Term

question 7

Multiple Choice

What is most likely to be the intended connecting term in the following argument by analogy? Beds are good for sleeping, so couches are also good for sleeping.

• A)They both have four legs.
• B)They are both furniture.
• C)They can both be bought from Sears.
• D)They are both soft.
• E)They both contain springs.

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Definitions:

Economic Order Quantity

is a formula used by businesses to determine the optimal amount of inventory to order at one time, aiming to minimize holding and ordering costs.

Variable Cost

Costs that vary directly with the level of production or service delivery.

Carrying Cost

Expenses associated with holding or storing inventory, including insurance, storage, and opportunity costs of invested capital.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to analyze the profitability of an investment.