Normative Statements Describe How the World Is, While Positive Statements

question 245

True/False

Normative statements describe how the world is, while positive statements prescribe how the world should be.

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Definitions:

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet production goals.

Direct Labor-Hours

A measure of the total time workers spend directly manufacturing a product or performing a service.

Direct Labor Rate

The average cost per hour for labor directly involved in the production of goods or services.

Direct Labor Budget

A forecast of the labor costs directly associated with production, factoring in anticipated hourly rates and hours needed.