An Intangible Asset That Records the Initial Cost of Forming

question 62

Multiple Choice

An intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees is called:

• A) Common Stock.
• B) Organization cost.
• C) Preferred Stock.
• D) Paid-in Capital.

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Definitions:

Enterprise Resource Planning

Integrated management software systems that are used to collect, store, manage, and interpret data from various business activities, facilitating information sharing across the organization.

SCM

Supply Chain Management, the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Just-In-Time Production

A manufacturing methodology aimed at reducing inventory costs by producing goods only as they are needed in the production process or by the customer.

Inventory Replenishment

The process of adding stock to inventory to maintain desired levels and fulfill customer orders without delay.