Positive and Normative Statements Differ in That

question 32

Multiple Choice

Positive and normative statements differ in that

• A) positive statements can be tested, whereas normative statements cannot.
• B) normative statements depict ʺwhat isʺ and positive statements depict ʺwhat ought to be.ʺ
• C) normative statements can be tested, whereas positive statements cannot.
• D) normative statements never use the word ʺshould.ʺ

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Definitions:

Variable Cost Per Unit

The cost that varies with the production volume, calculated per unit of product.

Sold Units

The quantity of items or products sold by a company or retailer within a specific period.

Direct Manufacturing Cost

Expenses directly associated with the production of a product, including labor and materials.

Produced Units

The quantity of goods or services produced by a company during a given period, reflecting its production output.