Under SFAS 141R

question 15

Multiple Choice

Under SFAS 141R:

• A) both direct and indirect costs are to be capitalized.
• B) both direct and indirect costs are to be expensed.
• C) direct costs are to be capitalized and indirect costs are to be expensed.
• D) indirect costs are to be capitalized and direct costs are to be expensed.

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Definitions:

Current Sources

The existing suppliers or providers from which a company obtains products, services, or information.

Strategic Alliances

Partnerships between two or more companies to pursue a set of agreed upon objectives while remaining independent organizations.

Intellectual Property

Legal rights related to creations of the mind, such as inventions, literary and artistic works, symbols, names, and images.

Organizational Success

The achievement of the goals and objectives set by an organization, typically measured by various performance indicators.