What Does It Mean to Say That an Observation Is

question 48

Multiple Choice

What does it mean to say that an observation is "objective?"

• A) the observation is empirical
• B) it is done by professional
• C) the observation has an intuitive basis
• D) it is unaffected by the observer's personal biases

Understand the concepts of supply and demand.

Identify factors that cause shifts in supply and demand curves.

Analyze the effects of price changes on the quantity demanded and supplied.

Distinguish between movements along a curve and shifts of the curve.

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Definitions:

Conservatism Principle

An accounting principle that advises reporting expenses and liabilities as soon as possible, but revenue only when it is ensured.

Gross Profit Method

An inventory valuation method used to estimate the cost of goods sold and ending inventory levels by applying a gross profit margin to sales.

Gross Profit Ratio

The gross profit ratio is a financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.

Estimated Cost

An approximation of the cost or expenditure associated with an activity, project, product, or service, made in the absence of precise information.