Normative Economic Statements

question 547

Multiple Choice

Normative economic statements

• A) describe the process of economic policy- making.
• B) describe what ought to be.
• C) deal with economic hypotheses that are not well- established laws.
• D) describe what is rather than what ought to be.

---

Definitions:

Administrative Expense

Costs related to the general administration of a business, including salaries of senior executives, costs of general services, and office supplies among others.

Raw Materials Purchases

The total amount spent on buying raw materials that are needed for the production process, a crucial component of manufacturing and production budgeting.

Master Budget

A comprehensive financial plan used by an organization that includes all financial statements and operating budgets for a specific period.

Credit Sales

Sales made on credit, where the customer purchases goods or services with an agreement to pay at a later date.