Total Technology Corp

question 2

Multiple Choice

Total Technology Corp. is looking for a simple and cost-effective way of acquiring a commercially available new technology for its present venture. Which of the following methods should the company first consider for the purpose?

• A)Licensing the technology.
• B)Developing the technology internally.
• C)Purchasing the technology.
• D)Buying the company that owns the technology.
• E)Developing the technology through research partnerships.

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Definitions:

Periodic Inventory System

An accounting method that updates inventory levels and cost of goods sold at the end of an accounting period, not continuously.

Merchandise Inventory

The goods or products that a retailer or wholesaler intends to sell to customers for a profit.

Purchase Discounts

Reductions in the cost price of goods or services that are offered to purchasers when they pay within a specified period or meet certain conditions, aimed at encouraging prompt payment.

Transportation-In

Costs incurred for shipping materials to a company, typically considered part of the inventory cost when calculating the cost of goods sold.