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3 years ago

Normative and positive statements

Business

1 answer:

kvasek [131]3 years ago

3 0

Answer:

Positive statement:

It is basically based on target and truth. Moreover, optimistic deliveries are have to be compelled to validate or nullified yet can't correct than

Normative Statement:

Adaptable announcements are particular and also the materials are value primarily based. The statements are basically valuation primarily based so that they can't be tried.

Since the statement 1 are often proved or contradicted by grouping and evaluating the information, thus this can be a positive statement.
Since the statement 2 is opinion primarily based, we tend to can't take a look at it, and thus this can be a normative statement.
Since the statement 3 are often tested by seeing those conditions. Hence, this can be a positive statement.
Since the statement 4 is opinion primarily based, thus we tend to can't take a look at it. Therefore, this can be a normative statement.

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The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va

s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as $\frac{Fixed\ cost}{Contribution\ per\ unit}$

Thus, break even point in units only in two cases,

Fixed cost is reduced that is decreased,
Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

7 0

4 years ago

Vijay Company reports the following information regarding its production costs.

Lera25 [3.4K]

Answer:

$46.40 per unit

Explanation:

The computation of the product cost per unit under absorption costing is shown below:

= Direct material per unit + Direct labor per unit + Variable overhead cost per unit + fixed overhead cost per unit

where,

Fixed overhead cost per unit would be

= Fixed overhead ÷ units produced

= $121,600 ÷ 16,000 units

= $7.60

All other items will remain unchanged

Now add these values in the formula above.

Hence, the value would be

= $9.60 + $19.60 + $9.60 + $7.60

= $46.40 per unit.

6 0

4 years ago

Edwin is a consultant working for a large engineering firm. He travels to visit clients and uses his laptop and a smartphone to

pychu [463]

Answer:

Mobile user.

Explanation:

A mobile user can be defined as a person that has access to relevant software through mobile device such as laptops, tablets, or mobile phones. They also communicate using mobile devices like smart phones or laptop over the internet.

Edwin is using the mobile user method in doing his job. He uses his laptop and phone to communicate bwith clients and his office. The laptop is used to handle work through business related software he has installed.

3 0

4 years ago

On January 1, Year 2 Grande Company had a $15,000 balance in the Accounts Receivable account and a zero balance in the Allowance

hjlf

Answer:

$62,500

Explanation:

As we know that cash flow statement records the cash inflow and cash outflow and ignored all other transactions which are not made in cash

Since in the question it is given that $62,500 is cash collected from account receivable and the same is to be shown in the operating activities in a positive sign that indicates an inflow of cash

3 0

3 years ago

On January 1, Year 1, Manlier Inc. leased equipment costing $45,000 to one of its customers. The sales-type lease agreement spec

k0ka [10]

Answer:

lease receive = $76441 ( debit entry )

cost of goods sold value = $42178 (debit entry )

equipment cost is = $45,000 ( credit entry )

sales revenue is = $73,619 (credit entry )

Explanation:

Given data

leased equipment costing = $45,000

lease agreement @ six annual payments = $15,000

present value of the annual lease payments = $73,619

residual value = $5,000

present value residual value = $2,822

to find out

journal entry recorded by Manlier at the beginning of the lease

solution

first we calculate lease receive that is debit entry

lease receive = present value of the annual lease payments + present value residual value

lease receive = 73619 + 2822

lease receive = $76441 ( debit entry )

now we calculate cost of goods sold value i.e

cost of goods sold value = leased equipment costing - present value residual value

cost of goods sold value = 4500 - 2822

cost of goods sold value = $42178 (debit entry )

equipment cost is = leased equipment costing = $45,000 ( credit entry )

sales revenue is = present value of the annual lease payments = $73,619 (credit entry )

4 0

3 years ago