Which of the Following Is Not Required to Be Disclosed

question 14

Multiple Choice

Which of the following is not required to be disclosed in an entity's financial statements or accompanying footnotes?

• A)the total amount of research and development costs charged to expense during the current year
• B)the method used to amortize the entity's intangible assets
• C)a material amount of internally developed goodwill
• D)accumulated amortization on the entity's intangibles as of its year-end

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Definitions:

Absorption Costing

A cost calculation method in accounting that adds all expenses related to manufacturing—direct materials, direct labor, and both fixed and variable overhead—into the final cost of a product.

Directly Traced

Refers to costs or expenses that can be directly linked to a specific product, service, or department.

Product Costs

Expenses directly incurred from the manufacturing of products, including direct materials, direct labor, and manufacturing overhead.

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the cost of their direct materials and direct labor.