Which of the Following Is an Intangible Asset

question 171

Multiple Choice

Which of the following is an intangible asset?

• A)oil
• B)goodwill
• C)retained earnings
• D)accounts receivable

Apply the concept of the law of diminishing returns to various contexts including study time and production.

Understand how external factors like gasoline prices impact production costs and firm responses.

Analyze the decision-making process in the presence of sunk costs.

Examine the effects of technological innovations on production processes and economies of scale.

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Definitions:

Margin of Safety

The difference between actual sales and break-even sales, measuring the risk of not reaching the break-even point.

Budgeted Income Statement

A financial statement forecasting the revenues, expenses, and net income for a specific period, based on proposed budgets and assumptions.

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Sales

The total amount of revenue a company generates from the sale of goods or services before any expenses are deducted.