Kyra Has Been Baking and Supplying Cookies Under the Brand

question 55

Multiple Choice

Kyra has been baking and supplying cookies under the brand name Kyra worldwide for almost 20 years. She wants to keep her cookie recipe a trade secret. Which of the following statements is true in this scenario?

• A) The recipe cannot be considered a trade secret as it is not an intangible item.
• B) The trade secret of the recipe will be bounded by a time limit.
• C) Kyra will not need to disclose the recipe to make it a trade secret.
• D) Kyra will have to bear filing costs to make the recipe a trade secret.

---

Definitions:

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash working capital and non-operating items to determine cash flow from operating activities.

Operating Activities

Tasks and transactions related to the core business functions of a company, such as selling products and providing services, integral to generating revenue.

Direct Method

A costing method that directly allocates service department costs to producing departments without any intermediate allocation steps.

Operating Activities

Refers to the primary revenue-generating activities of a business, typically including sales, service delivery, and associated costs.