Positive Theories

question 14

Multiple Choice

Positive theories:

• A) explain why managers choose a particular accounting method.
• B) might be descriptive of accounting practice.
• C) All of these options are correct.
• D) rely on real-world observations.

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Definitions:

Units Per Period

A metric that indicates the quantity of production, sales, or any other measurable activity within a specified timeframe.

Marginal Product

The increase in output that results from employing one more unit of a specific input, holding all other inputs constant.

Bushels

A unit of volume that is used in the United States for measuring agricultural products, such as grains.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input used, holding all other inputs constant.