Assets That Do Not Have a Physical Substance Yet Often

question 85

Short Answer

Assets that do not have a physical substance yet often are very valuable are called ______________ assets.

Calculate and analyze differential costs and their impact on decisions.

Determine product emphasis based on profitability and production constraints.

Evaluate the financial impact of discontinuing a product.

Rank products by profitability to optimize the use of constrained resources.

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Definitions:

Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Job-Order Costing

A cost accounting system that calculates the cost of individual jobs or orders, commonly used in custom manufacturing.

Automated Shaper

A machine that uses computer controls to cut and shape materials with precision, often used in manufacturing for consistent and efficient production.

Manufacturing Overhead

Costs associated with manufacturing a product that are not directly tied to the factory's operations.