An Intangible Asset Should

question 51

Multiple Choice

An intangible asset should

• A)not be amortized if it has an finite life.
• B)not be amortized if it has an indefinite life.
• C)be amortized over its legal or useful life, whichever is longer.
• D)be amortized over 5 years or less.

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Definitions:

Indirect Costs

are expenses not directly tied to a specific product or service production but necessary for the organization's overall operations, such as utilities or administration salaries.

Hard Costs

Direct, tangible expenses associated with the execution of a project, such as materials and labor costs.

Expenditures

The act of spending or disbursing money, particularly in relation to business or government expenses.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies to improve performance.