Which of the Following Is an Example of a Normative

question 69

Multiple Choice

Which of the following is an example of a normative statement?

• A) The American Recovery and Reinvestment Act should not have been passed during the Great Recession.
• B) Unemployment soared to 25 percent during the Great Depression.
• C) An increase in alcohol taxes will reduce the number of drunk driving accidents.
• D) Great Britain has fewer hospital beds per capita today than they did in 1948.

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Definitions:

Actual Operations

The real, observed activities and results of a business's operations, as opposed to projections or estimates.

Materials Quantity Variance

The variance between the real amount of materials consumed in the production process and the anticipated standard amount, times the standard unit cost.

Direct Materials Purchases Variance

A measure used in accounting to analyze the difference between the budgeted cost of materials needed for production and the actual cost incurred.

Actual Production

The real quantity of goods or services produced in a specified period, as opposed to planned or expected production levels.