The Closer the Gini Coefficient Is to 1, the

question 28

Multiple Choice

The closer the Gini coefficient is to 1, the

• A)greater the degree of income inequality.
• B)less the degree of income inequality.
• C)greater the degree of discrimination.
• D)less the degree of discrimination.

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Definitions:

Period Costs

Costs that are expensed in the period in which they are incurred; they are not tied directly to the production process and include items like sales, general, and administrative expenses.

Manufacturing Company

An entity engaged in the production of goods by combining raw materials and components in an industrial process.

Work in Process Inventory

Work in process inventory consists of partially finished goods that are still in the production process at a given point in time.

Overapplied Overhead

A situation where the overhead allocated to products or services exceeds the actual overhead costs incurred.