Which of the Following Is a Positive (Rather Than a Normative)

question 24

Multiple Choice

Which of the following is a positive (rather than a normative) question?

• A)What effect does increasing welfare assistance by 20% have on female labor supply?
• B)Should the U.S. allow unlimited immigration?
• C)Should the "Highly Qualified Teacher" provision of No Child Left Behind be eliminated?
• D)Should there be a minimum wage?
• E)Should trade unions be allowed to lobby Congress?

Estimate the financial position at the end of a period in terms of accounts receivable, accounts payable, and inventory balances.

Analyze the effects of depreciation and other non-cash expenses on budgeting.

Prepare and analyze the budgeted income statement components like gross margin, net operating income, and net income.

Understand the fundamentals of activity-based costing (ABC) and how it differs from traditional costing systems.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes toward covering fixed expenses and generating profit.

Variable Selling Costs

Expenses that vary directly with the volume of products sold, such as commissions and shipping fees.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

Variable Costs

Costs that fluctuate with the level of output or production, such as raw materials and direct labor.