Which of the Following Is a Normative Statement

question 78

Multiple Choice

Which of the following is a normative statement?

• A)"Income inequality in the United States has increased."
• B)"The Federal Reserve has observed rising inflation."
• C)"The government should increase the minimum wage to help low-income groups."
• D)"The minimum wages are higher in some cities than in other cities."
• E)"The relative price of gasoline has remained low in the past 30 years."

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Definitions:

Absorption Costing

An accounting method that assigns all manufacturing costs, including both variable costs and fixed overhead, to the production units, making them more expensive on a per-unit basis.

Break-even

The financial point at which revenues exactly match costs, resulting in no net loss or gain.

Product Costs

Costs that are directly associated with the creation of a product, including material, labor, and overhead expenses.

Controllable Costs

Expenses that can be influenced or managed by decisions made by specific managers or departments within an organization.