Intangible Assets Are Usually Amortized Using

question 39

Multiple Choice

Intangible assets are usually amortized using

• A) The straight-line method
• B) The units-of-production method
• C) The declining-balance method
• D) The sum-of-the-years'-digits method

---

Definitions:

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, enabling the calculation of the cost per job.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a specific activity base.

Machine-Hours

A measure of the amount of time a machine is used during the production process, often used in costing and budgeting.

Direct Labor-Hours

The number of hours spent by workers directly involved in the manufacturing of a product or delivery of a service.