The Cost of Acquiring a Customer List from Another Company

question 68

True/False

The cost of acquiring a customer list from another company is recorded as an intangible asset.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of multiple investments.

Income From Operations

The earnings generated from a company's regular core business operations, excluding deductions of interest and taxes.

Residual Income

A measure of net income after accounting for the cost of capital.

Activity Base

A measure used for allocating fixed costs to products or services based on the amount of activity.