An Example of a Normative Statement Is

question 102

Multiple Choice

An example of a normative statement is:

• A) The rate of unemployment is 4 percent.
• B) A high rate of economic growth is good for the country.
• C) The federal government spends half of its budget on national defense.
• D) People with health insurance tend to spend more on health care than those who are uninsured.

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Definitions:

Total Manufacturing Cost

The aggregate of all costs—direct materials, direct labor, and manufacturing overhead—incurred in producing finished goods.

Raw Materials

are the basic, unprocessed inputs used in the manufacture of goods and products.

Indirect Materials

These are materials used in the production process that are not directly traceable to the finished product.

Production

The process of creating goods and services through the combination of labor, materials, and technology.