Assets That Have Value to a Business but Are Not

question 32

Multiple Choice

Assets that have value to a business but are not visible are known as ______.

• A) intangible assets
• B) tangible assets
• C) long-term assets
• D) current assets

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Definitions:

Service Organization

A business that provides professional services or expertise to clients, rather than tangible goods.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as sales and administrative expenses.

Production Requirements

The specific inputs and conditions needed for the production process to create goods or services.

Direct Labor Cost

The cost of wages paid to workers directly involved in manufacturing a product or providing a service, excluding indirect labor involved in support roles.