Which of the Following Statements Is True About What Caused

question 24

Multiple Choice

Which of the following statements is true about what caused the shift in paradigm from normative to positive research?

• A) The shift resulted from US reports on business education, and improved computing facilities enabling large-scale statistical analysis.
• B) The shift occurred because positive accounting researchers are not concerned with explaining or predicting what is (i.e. that which could be tested empirically); rather, they are concerned with what should be.
• C) The shift occurred because in positive research, falsifiable hypotheses are not generated from theory.
• D) All of the given options are correct.

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Definitions:

Operating Income

This is the profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating the amount available to cover fixed expenses and generate profit.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in revenue, indicating the proportion of fixed versus variable costs.

Income Statement

A financial report that shows a company's revenues, expenses, and profit or loss over a specific period.