Positive Statements Are Not

question 17

Multiple Choice

Positive statements are not

• A)descriptive.
• B)prescriptive.
• C)claims about how the world is.
• D)made by economists speaking as scientists.

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Definitions:

Variable Overhead

Costs that vary with the level of production or business activity, such as utilities or raw materials.

Materials Price Variance

The variance between the real expenses incurred from direct materials in manufacturing and the anticipated standard cost of those materials.

Labor Rate Variance

The discrepancy between what labor actually costs and what was originally forecasted or considered standard.

Variable Manufacturing

Costs that change in direct proportion to changes in the volume of production output.