Normative Statements I.describe How the World Is

question 189

Multiple Choice

Normative statements
i.describe how the world is.
ii.describe how the world ought to be.
iii.depend on people's values and cannot be tested.

• A) i only.
• B) ii only.
• C) iii only.
• D) ii and iii.
• E) i and iii.

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Definitions:

Variable Costs

Variable Costs are expenses that vary directly with the level of output or production, such as materials and labor costs.

NPV Calculations

A method used to evaluate the profitability of an investment by calculating the difference between the present values of cash inflows and outflows over a period of time.

Cash Flow Projections

Estimates of the amount of money expected to flow in and out of a business over a certain period.

Discount Rate

This is the rate used during discounted cash flow analysis for evaluating the present value of cash flows anticipated in the future.