In Most Situations, the Simplest, Easiest, and Most Cost-Effective Way

question 120

Multiple Choice

In most situations, the simplest, easiest, and most cost-effective way to acquire new technology is to

• A) Buy it.
• B) Develop it internally.
• C) License it from others.
• D) Develop a joint venture.
• E) Purchase the owner of the technology.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was acquired, up to a specific date.

Expense Recognition

The accounting principle of matching expenses with revenues in the period in which they are incurred to generate those revenues, ensuring accurate financial reporting.

Insurance Premium

The amount paid periodically to an insurer by the insured for covering their risk.

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies, which protect the company's assets or activities.