Research Indicates That the Number One Reason for Terminating Research

question 92

Multiple Choice

Research indicates that the number one reason for terminating research and development projects is:

• A)That the project is found to be inconsistent with organizational goals.
• B)The project costs more to complete than originally planned.
• C)The low probability of achieving technical or commercial success.
• D)Increased government restrictions.

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Definitions:

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal annual amounts.

Impairment

A decrease in the recoverable value of an asset below its carrying amount on the balance sheet, necessitating a write-off.

Goodwill

The intangible asset that arises when a company acquires another for a price higher than the fair value of its identifiable tangible and intangible assets.

Indefinite Useful Life

An intangible asset that is not expected to deplete over a measurable period of time, and hence is not amortized.