Which of the Following Controls Is Not a Typical Internal

question 2

Multiple Choice

Which of the following controls is not a typical internal control over intangible assets?

• A) Procedures to provide reasonable assurance that decisions are appropriately made as to when to capitalize or expense research and development expenditures.
• B) Development of amortization schedules that reflect the remaining useful life of patents or copyrights associated with the assets.
• C) Procedures to identify and account for intangible asset impairment.
• D) All of the above are typical controls for intangible assets.

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Definitions:

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Variable Cost Per Unit

The cost associated with producing one additional unit of a product, which can change depending on the level of production or sales.

Cost Volume Profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Selling Price Per Unit

The amount of money charged to the customer for one unit of a product or service.