The Smaller the Gini Coefficient, the

question 106

Multiple Choice

The smaller the Gini coefficient, the

• A)larger the degree of income equality.
• B)larger the degree of income inequality.
• C)larger the national income relative to population.
• D)smaller the national income relative to population.
• E)larger the size of the government.

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Definitions:

Equipment Expense

The cost associated with purchasing or maintaining equipment necessary for the operation of a business.

Activity Rate

A ratio used in activity-based costing to allocate costs to products or services based on the number of transactions or events.

Processing Activity

The actions or operations conducted on raw materials to transform them into finished goods in the manufacturing process.

Activity-Based Costing

An approach to costing that pinpoints various activities in a company and distributes each activity's costs to every product and service based on their actual consumption.