Normative Statements I.describe How the World Is

question 189

Multiple Choice

Normative statements
i.describe how the world is.
ii.describe how the world ought to be.
iii.depend on people's values and cannot be tested.

• A) i only.
• B) ii only.
• C) iii only.
• D) ii and iii.
• E) i and iii.

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Definitions:

Profit

The financial gain derived from a business activity after subtracting all expenses, taxes, and costs.

Manufacturing Overhead

Costs, other than direct materials and direct labor costs, that are incurred in the manufacturing process.

Direct Labor Hours

The time spent by workers directly involved in the production process of goods or services, often used to allocate labor costs to products.

Overapplied

A situation in cost accounting when the allocated or applied costs exceed the actual costs incurred.