When It Seems Likely That a Licensee May Develop Improvements

question 36

Multiple Choice

When it seems likely that a licensee may develop improvements in the licensed technology,a licensor may wish to include a ____ in the license agreement.

• A) Grant back provision.
• B) Field use provision.
• C) Technology transfer.
• D) Promise of confidentiality.

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Definitions:

Absorption Costing

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Product Costs

Costs that are considered to be directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Fixed Production Costs

Costs that do not vary with the level of production, such as rent for manufacturing facilities.

Variable Selling Expenses

Costs that fluctuate with sales volume, such as commissions and shipping charges, directly associated with the selling of products.