What Happens as the Value of the Gini Coefficient Approaches

question 79

Multiple Choice

What happens as the value of the Gini coefficient approaches zero?

• A)Income distribution becomes more unequal.
• B)Income distribution becomes less unequal.
• C)The percentage of the population under the poverty line decreases.
• D)The percentage of the population under the poverty line increases.

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Definitions:

Activity-Based Costing

An accounting method that identifies the activities a firm performs and assigns costs to products and services based on the actual consumption of resources.

Total Overhead Cost

The sum of all indirect costs of manufacturing or providing services that are not directly tied to a specific product or job.

Activity Rate

This refers to the cost driver rate used in activity-based costing to allocate costs to products or services based on the activities that those products or services require.

Activity Cost Pool

A grouping of all the costs related to a particular activity, used in activity-based costing to allocate costs to products or services.