Intangible Assets Often Constitute a Substantial Source of Value to the Acquiring

question 92

Multiple Choice

Intangible assets often constitute a substantial source of value to the acquiring firm. Which of the following are not generally considered intangible assets?

• A) Patents and technical know-how
• B) Warranty and contingent claims
• C) Trademarks and customer lists
• D) Covenants not to compete and franchises
• E) Copyrights and software

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Definitions:

Quality Cost Report

A report that summarizes the costs associated with ensuring products or services meet quality standards, including prevention, appraisal, and failure costs.

Defective Products

Items produced that do not meet the quality standards set by the company or industry, leading to potential returns or losses.

Internal Failure Cost

Costs associated with defects found before a product reaches the customer, including scrap and rework expenses.

Quality Cost Report

A document or tool that tracks the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.