The Lorenz Curve Would Be a Diagonal Line If Income

question 36

True/False

The Lorenz curve would be a diagonal line if income were distributed equally.

---

Definitions:

Direct Materials

Raw materials directly used in the production of a product, easily traceable to the finished product.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Equivalent Units

A concept in process costing that converts partially completed units into a number of fully completed units for the purposes of accounting.

Inventory Costs

Expenses associated with acquiring, storing, and managing goods that a company intends to sell.