Which of the Following Is a Normative Statement

question 152

Multiple Choice

Which of the following is a normative statement?

• A)The U.S.rate of unemployment was lower in 2004 than it was in 1994.
• B)Savings accounts earn interest, whereas checking accounts do not.
• C)Congress must recognize that the growing national debt is the most serious problem that the country faces.
• D)The unemployment rate increases when the percentage of the labor force without jobs increases.
• E)The unemployment rate among teenagers is higher than the rate among adults.

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Definitions:

Job-Order Costing

A technique in accounting aimed at recording expenses and assessing the income potential of single tasks or collections.

Direct Labor Costs

Wages and other expenses for employees who are directly involved in the manufacturing of products.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services, forming a significant component of manufacturing costs.

Job-Order Costing

Job-order costing is an accounting method that assigns costs to specific jobs or batches, useful in industries where each product or service is customized.