Which of the Following Is Not a Characteristic of an Intangible

question 48

Multiple Choice

Which of the following is not a characteristic of an intangible asset which distinguishes it from a tangible asset?

• A)generally a higher degree of uncertainty regarding the future benefit that may be derived
• B)value is subject to narrower fluctuations because it is less sensitive to competitive conditions
• C)may have value to only a particular company
• D)an intangible with an indefinite life is not expensed

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Definitions:

Diseconomies of Scale

The condition when a company grows so large that the costs per unit increase, causing a decrease in efficiency.

Coordinating

The organization and alignment of activities, processes, or efforts to ensure efficient and effective achievement of goals or outcomes.

Managing

The process of planning, organizing, leading, and controlling resources to achieve specific goals.

Long-Run Average Total Cost Curve

A curve that shows the lowest possible cost of producing different levels of output when all factors of production, including capital, can be varied.