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Which of the Following Are TRUE Regarding "Positive" Statements

question 41

Multiple Choice

Which of the following are TRUE regarding "positive" statements?
I. They describe what "ought to be."
II. They describe what is believed about how the world appears.
III. They can be tested as to their accuracy.


Definitions:

Fixed Overhead

Costs that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Budget Variance

The difference between what was budgeted or planned in terms of financial performance or cost, and what was actually achieved.

Labor Efficiency Variance

The difference between the actual labor hours used and the standard hours expected for the level of production achieved.

Direct Labor

The cost of workers who are directly involved in the production of goods or the delivery of services.

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