Which of the Following Assets Is Regarded as Meeting the Identifiability

question 15

Multiple Choice

Which of the following assets is regarded as meeting the identifiability criteria for recognition as an identifiable intangible asset that may be acquired in a business combination?

• A) Newspaper mastheads.
• B) Customer service capability.
• C) Outstanding credit ratings.
• D) Presence in geographic locations.

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Definitions:

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease.

Average Total Cost

The total cost of production divided by the quantity of output produced.

Economies of Scale

Enterprises achieve cost benefits from their operation size, resulting in a reduction of cost per output unit as the scale expands.

Average Variable Cost

The total variable costs divided by the quantity of output produced; it fluctuates with production volume.