Which of the Following Is Not a Criteria Which Must

question 70

Multiple Choice

Which of the following is not a criteria which must be met before development costs can be capitalized?

• A) The company has sufficient financial resources to complete the project.
• B) The company intends to complete the project and either use or sell the intangible asset.
• C) The company can reliably identify the research costs incurred to bring the project to economic feasibility.
• D) The project has achieved technical feasibility.

---

Definitions:

Geographical Distribution

The physical locations where a population, species, or commercial activity is found or targeted.

Investment

The allocation of resources, often money, into a venture with the expectation of generating income or profit over time.

Cost-Leadership Strategy

A business strategy aimed at achieving the lowest operational costs within an industry to offer products or services at lower prices than competitors.

Competitive Advantage

A unique attribute or set of attributes that allows an organization to outperform its competitors, often leading to greater sales or market share.