The Principle of Parsimony Refers To

question 12

Multiple Choice

The principle of parsimony refers to:

• A)the most complicated explanation involving the smallest number of evolutionary changes.
• B)the most complicated explanation involving the largest number of evolutionary changes.
• C)the simplest explanation involving the smallest number of evolutionary changes.
• D)the simplest explanation involving the largest number of evolutionary changes.
• E)explanations that support your hypothesis.

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Definitions:

Fixed Overhead

The portion of a company's fixed costs that are not directly tied to production levels, such as rent and insurance.

LIFO Reserve

The difference between the cost of inventory calculated under the Last-In, First-Out method and the FIFO method.

LIFO

Last-In, First-Out, an inventory management method where the most recently produced or acquired items are sold first.

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for 'First In, First Out'.