Normative Economics

question 16

Multiple Choice

Normative economics:

• A)is not based on underlying value judgments.
• B)makes recommendations to achieve efficient outcomes.
• C)establishes cause-and-effect relationships between economic variables.
• D)makes "if…then" type statements and checks them against the facts.

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Definitions:

Overhead

The indirect costs or expenses related to the operation of a business that are not directly tied to a specific product or service.

Job Order Cost Accounting

A method of accounting that accumulates costs for each job or project separately, often used in manufacturing or service industries.

Direct Labor Costs

Expenses associated with employees who directly contribute to the manufacturing or production of goods.

Work in Process

Partially finished goods that are in production but have not yet been completed at a specific point in time.