What Is the Best Way to Use Observation to Test

question 14

Multiple Choice

What is the best way to use observation to test a theory?

• A) Try and find observations that confirm the theory
• B) Search for instances that do not fit with or disprove the theory
• C) Try to find instances that both confirm and disprove the theory and work out which outweighs the other
• D) Make as many observations as possible

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Definitions:

Finished Goods

Goods that are finished being made but haven't been purchased or sent out to buyers yet.

Total Costs

The complete accumulation of costs involved in the production, operation, or project completion, encompassing both fixed and variable costs.

Overapplied Overhead

A scenario in which the overhead cost assigned to manufacturing exceeds the overhead cost that was actually incurred.

Net Operating Income

The profit a company generates from its operations, excluding taxes and interest.