There Are Two Primary Reasons to Conduct an Intellectual Property

question 54

Multiple Choice

There are two primary reasons to conduct an intellectual property audit. First, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to:

• A) remained prepared for a Security & Exchange Commission spot inspection
• B) remain prepared to justify its value in the event of a merger or acquisition
• C) remain prepared for an initial public offering
• D) update the value of its intellectual property on its balance sheet
• E) make sure no intellectual property has been stolen

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Definitions:

Estimated Labor-Hours

The projected number of labor hours required to complete a batch of goods or provide a service.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.

Unused Capacity

Resources available for use that are not being employed in production, often representing inefficiency.

Estimated Activity

An approximation of the level of effort, production volume, or usage that forms the basis for budgeting and costing activities.