Economists View Normative Statements as

question 12

Multiple Choice

Economists view normative statements as

• A)prescriptive,making a claim about how the world ought to be.
• B)descriptive,making a claim about how the world is.
• C)statements about the normal condition of the world.
• D)pessimistic,putting the worst possible interpretation on things.

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Definitions:

Cost Flow Assumption

Accounting methods that companies use to assign costs to inventory and cost of goods sold, such as FIFO, LIFO, and weighted average cost.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total sales revenue.

Average Cost Methods

The average cost method is an inventory costing method where all costs of inventory are averaged out and applied to the cost of goods sold and ending inventory.

Security Measures

Steps or protocols implemented to protect assets, information, and people from theft, damage, and unauthorized access.