The Cost of an Internally Developed Unidentifiable Intangible Is Expensed

question 55

Multiple Choice

The cost of an internally developed unidentifiable intangible is expensed as incurred. Accordingly, which one of the following costs would be expensed in the year it was incurred?

• A) legal cost of obtaining a patent
• B) cost of improvements with a three-year life made to an asset that is being leased by the company for a five- year period
• C) costs of developing new software products with proven technological feasibility
• D) Costs of developing knowledge and skill levels for new management-level employees

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Definitions:

Strategic Planning

Strategic Planning is the process by which an organization defines its strategy, direction, and decision-making on resource allocation to pursue its long-term goals.