The Poverty Line Refers to

question 12

Multiple Choice

The poverty line refers to

• A)the amount of money needed to support the basic needs of a household,as determined by the government.
• B)the minimum amount of money a household needs to be considered middle class.
• C)the amount of money a family needs to be comfortable.
• D)the average hourly wage of the poorest workers in a society.

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Definitions:

Absorption Costing

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

Inventory Buildup

The accumulation of products or materials in excess of demand, often leading to increased storage costs and reduced cash flow.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, salaries, and insurance.

Variable Inventory Costs

Variable inventory costs fluctuate with changes in production volume, including costs like raw materials and direct labor.