Which of the Following Is True

question 75

Multiple Choice

Which of the following is true?

• A) The majority of millionaires received most of their wealth through an inheritance.
• B) The percentage of the population that are millionaires in inflation-adjusted dollars has been stable since the 1970s.
• C) About one-third of millionaires have college degrees.
• D) More than 75 percent of American millionaires have college degrees.

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Definitions:

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.

Variable Costing

A pricing technique that incorporates solely the variable costs of production—such as raw materials, direct labor, and variable overhead expenses—into the per-unit cost of products.

Variable Overhead

Costs that change with the level of production or service activities.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.