One Thing That Distinguishes Normative Principles from Positive Principles Is

question 1

Multiple Choice

One thing that distinguishes normative principles from positive principles is that:

• A) normative principles are pessimistic and positive principles are optimistic.
• B) normative principles reflect the social norms of the community, and positive principles reflect universal truths.
• C) normative principles tell us how people should make economic decisions, and positive principles tell us how people actually do make decisions.
• D) normative principles tell us how people actually make economic decisions, and positive principles tell us how people should make decisions.

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Definitions:

Manufacturing Overhead

Refers to all the indirect costs associated with manufacturing, not directly tied to a specific product, such as factory rent or maintenance.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.

Manufacturing Overhead

Indirect costs related to the production process, such as factory rent, utilities, and maintenance, which are not directly tied to specific units produced.

Work in Process

Inventory consisting of items that are in the production process but are not yet completed products.