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:

Set-Up Costs

Expenses incurred to prepare and configure equipment or processes for production.

Activity-Based Costing

An approach to costing that recognizes organizational activities and distributes each activity's costs to every product and service, reflecting their real consumption.

High-Low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Cost

A cost that varies directly with the level of production or sales volume, such as materials and labor costs.