A Fallacy of Composition Involves Assuming That

question 106

Multiple Choice

A fallacy of composition involves assuming that:

• A)you can determine the composition of a complex product just by examining its exterior properties.
• B)consumer durable goods today do not last as long as they did a generation ago.
• C)any mistakes made in producing a product using an assembly line technique will lead to a compounding of errors as the product moves down the line.
• D)what is true for any individual component in a group is true for the group as a whole.
• E)what was true when a person was younger will still be true today.

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Definitions:

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Direct Method

A financial accounting method that allocates service department costs directly to producing departments without intermediate allocations.

Sales Revenue

The overall sum of money made from selling products or services before deducting any costs.

Direct Method

A cash flow statement preparation approach that enumerates major classes of gross cash receipts and payments.