Normative Economic Statements

question 377

Multiple Choice

Normative economic statements

• A) describe what ought to be.
• B) describe what is rather than what ought to be.
• C) describe the process of economic policy-making.
• D) deal with economic hypotheses that are not well-established laws.

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Definitions:

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.

Batch Setup

The process of preparing equipment and machinery for a specific batch of production, including configuration and adjustments.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, facilitating more accurate product or service costing.

Activity-based Costing System

A method of allocating costs to products or services based on the activities that go into producing them.