Intangible Assets May Be Purchased or Developed

question 45

Multiple Choice

Intangible assets may be purchased or developed.If developed,they are categorized as Research and Development and

• A) depreciated over their useful life.
• B) amortized over their useful life.
• C) depleted over their useful life.
• D) expensed.

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Definitions:

Performance Report

A document that evaluates the output, efficiency, and effectiveness of an individual's or organization's performance.

Direct Expenses

Costs that can be directly tied to the production of specific goods or services, such as raw materials and labor.

Indirect Expenses

Costs that are not directly attributable to a specific cost object, such as a product or department, including utilities, rent, and administrative salaries.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive officers, legal and clerical work, and office supplies.