Archimedes Was Asked by the King to Determine Whether the Goldsmith

question 293

Multiple Choice

Archimedes was asked by the king to determine whether the goldsmith in making his crown had cheated the king by substituting cheaper metals.To solve this problem, Archimedes began by asking himself, "How can I tell what metals have been used in the crown without damaging it?" At this point, Archimedes is in which stage of creative thought?

• A) verification
• B) preparation
• C) orientation
• D) incubation

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Definitions:

Net Operating Income

The profit generated from a company's normal core business operations, excluding deductions of interest and taxes.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.