Which of the Following Is a Normative Statement

question 116

Multiple Choice

Which of the following is a normative statement?

• A)Next year's inflation rate will be under 4 percent.
• B)Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer.
• C)Government cuts in welfare spending impose an unfair hardship on the poor.
• D)A wheat shortage or surplus is always the result of federal government policies.
• E)Hurricane Irene caused more damage in the United States than Hurricane Katrina.

---

Definitions:

Direct Materials Budget

An estimation of the quantity and cost of direct materials necessary for production, matching the production budget.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Production Needs

The requirements necessary to manufacture products, including materials, labor, and machinery.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.