A Neighbor Talking to Others in a Community Said That

question 134

Multiple Choice

A neighbor talking to others in a community said that all members of the working class prefer to wear blue jeans rather than slacks.He said this because all working class people whom he knew wore jeans.This statement is an example of knowledge based on:

• A)overgeneralization
• B)generalization
• C)the exception to the rule
• D)qualification
• E)illogical reasoning

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Definitions:

Units

A measure of quantity, such as items or pieces, used in production and inventory contexts.

Mixed Cost

A cost composed of both fixed and variable components, changing in total with activity level but not proportionally.

True Variable Cost

Costs that vary exactly with the level of activity or production volume, including direct materials and some elements of manufacturing overhead.

Fixed Cost

Costs that do not vary with the level of output or sales, remaining constant regardless of the business activity level, such as rent and salaries.