What Is the Simplest Answer That Explains the Most Evidence

question 18

Multiple Choice

What is the simplest answer that explains the most evidence

• A) principle of parsimony
• B) mental accessibility
• C) heuristics
• D) priming

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of production or business activity, such as materials and labor.

Fixed Cost

A cost that does not change with the volume of sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.