Which of the Following Does Not Help Account for the Extremely

question 47

Multiple Choice

Which of the following does not help account for the extremely skewed distribution of wealth in the U.S.?

• A)The returns to entrepreneurship.
• B)Inheritances.
• C)Loopholes in current income tax laws.
• D)The returns to successful financial investment.
• E)None of the above.

---

Definitions:

Reciprocal Method

An accounting technique used in managerial accounting to allocate costs between support departments, taking into account the mutual services they provide to each other.

Sequential Method

An approach to cost allocation in which support department costs are allocated to other support and operating departments sequentially, one after another, based on a predetermined order.

Reciprocal Services

Services exchanged between departments within an organization, used in cost accounting to allocate service department costs to producing departments.

Reciprocal Services

Services exchanged between departments within an organization or between companies without direct monetary payment, often valued and accounted for through internal mechanisms.