According to the Bureau of Labor Statistics,the Distribution of Consumption

question 112

Multiple Choice

According to the Bureau of Labor Statistics,the distribution of consumption expenditures had a HiLo ratio of 3.8 in 2008 in contrast to the income ratio of 14.1.What can be inferred from the above statement?

• A)The distribution of consumption expenditures across the households are unequal but the incomes are relatively equal.
• B)Low income households have substantially less consumption expenditures.
• C)The distribution of consumption expenditures is quite a bit more equal than is the distribution of income.
• D)Poorest lot of the households consume much less than their before-tax incomes.
• E)The rich people earn more and consequently consume much more than their poorer counterparts.

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Definitions:

Cost System

An accounting framework used to record, track, and analyze the costs associated with a company's operations, helping in budgeting and financial decision-making.

Processing Department

A processing department is a division within a manufacturing facility where a specific stage of production is carried out, essential in process costing systems.

Process Costing

A costing method used when nearly identical products are produced through continuous processes, allocating costs based on process departments.

Journal Entries

The records of financial transactions in the double-entry bookkeeping system, where each transaction is noted in two accounts (debit and credit).