Normative Statements Are Not

question 13

Multiple Choice

Normative statements are not

• A)descriptive.
• B)prescriptive.
• C)claims about how the world should be.
• D)made by economists speaking as policy advisers.

---

Definitions:

Markup

The addition to the cost price of items to include overhead expenses and profits.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, overhead, and any other costs directly related to the project.

Job M825

A specific designation for a job or project, often used within a job-order costing system to track costs and progress.

Predetermined Overhead Rate

A calculated rate used to estimate the manufacturing overhead cost for a particular job or production process, calculated before costs are incurred.