What Is the Relationship Between Policies and Norms

question 11

Multiple Choice

What is the relationship between policies and norms?

• A) Norms are informal, unwritten rules; policies are formal, written rules.
• B) Norms are formal, written rules; policies are informal, unwritten rules.
• C) Both norms and policies are informal, unwritten rules, but policies have social consequences.
• D) Both norms and policies are formal, written rules, but norms are enforced by peers and policies by authorities.

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Definitions:

Goods In Transit

Merchandise or stock that has been shipped by the seller but has not yet been received by the purchaser.

FIFO Method

"First In, First Out," an inventory valuation method assuming goods first purchased or produced are the first to be sold.

Perpetual Inventory System

An inventory system that tracks merchandise in real-time, updating inventory records immediately upon purchase or sale.

Periodic Inventory System

An inventory accounting system where updates to inventory levels and Cost of Goods Sold are made at set intervals.