A Person Starts from One Point and Comes Up with Many

question 127

Multiple Choice

A person starts from one point and comes up with many different ideas or possibilities based on that point. The person is engaging in __________

• A) functional thinking.
• B) circular thinking.
• C) convergent thinking.
• D) divergent thinking.

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Definitions:

Cost Flow

The manner in which costs move through a company’s accounts, typically following either a FIFO, LIFO, or weighted average approach in costing inventory.

Average Cost

A method to calculate the cost per unit by dividing total costs of goods available for sale by the total units available for sale, used in inventory valuation.

Last-In, First-Out

An inventory valuation method that assumes the items most recently purchased or produced are sold first, leaving older inventory in stock.

Merchandise Sold

Merchandise sold refers to the products that a company sells to its customers, which can include anything from physical goods to software.