Cost of Goods Sold Is Determined Only at the End

question 168

Multiple Choice

Cost of goods sold is determined only at the end of the accounting period in

• A)a perpetual inventory system.
• B)a periodic inventory system.
• C)both a perpetual and a periodic inventory system.
• D)neither a perpetual nor a periodic inventory system.

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Definitions:

Representativeness Heuristic

A cognitive shortcut used in decision making, where an individual relies on the similarity between the item in question and a category prototype.

Divergent Thinking

Expanding the number of possible problem solutions; creative thinking that diverges in different directions.

Fixation

(1) in thinking, the inability to see a problem from a new perspective; an obstacle to problemsolving. (2) in personality theory, according to Freud, a lingering focus of pleasure-seeking the developing human organism from about 2 weeks after fertilization through the secondmonth

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.