Normative Statements Are Statements About

question 571

Multiple Choice

Normative statements are statements about

• A) what is.
• B) what ought to be.
• C) prices.
• D) quantities.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a category or period, indicating over or underspending.

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected (or standard) quantity.

Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.

Standard Cost Card

A document that lists the standard costs associated with producing a product, including materials, labor, and overhead rates.