Since the 1970s, the Share of Income in the Top

question 145

Multiple Choice

Since the 1970s, the share of income in the top fifth of households

• A)has steadily increased.
• B)has steadily decreased.
• C)has remained relatively constant.
• D)dipped in the 1980s but increased since.

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Definitions:

Labor Rate Variance

A measure used in accounting to calculate the difference between the actual cost of labor and the expected (or standard) cost.

Direct Labor Cost

The total expense of paying for the labor of employees directly involved in manufacturing a product or delivering a service.

Budgeted Direct Labor Cost

The estimated cost of labor directly involved in the production process, as planned in the budget.

Labor Rate Variance

The difference between the actual cost of direct labor and the estimated cost, indicating how well labor costs were controlled.