When a Problem Is Seen as Having Only One Answer,with

question 72

Multiple Choice

When a problem is seen as having only one answer,with all lines of thinking leading to that answer,this is known as _______ thinking.

• A)divergent
• B)creative
• C)convergent
• D)mental set

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even sales level, used to assess risk.

Volume of Sales

Volume of sales refers to the total number of units sold over a specific period, indicating the quantity of business conducted.

Break-even Point

The point at which total revenues equal total costs, resulting in no net loss or gain for a business.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and inventory valuation.