Which of the Following Is Not a Directly Attributable Cost

question 7

Multiple Choice

Which of the following is not a directly attributable cost of research and development?

• A) costs of employee benefits arising from the generation of the intangible asset
• B) fees to register a legal right
• C) costs of materials consumed in generating the intangible asset
• D) All of the given answers are correct.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Market Price

The present rate at which a service or asset is being traded.

Net Income

The final amount of money a company makes after removing all operational costs, taxes, and additional expenses from the overall income.

Return On Common Stockholders' Equity

A financial ratio that measures the profitability of a company from the perspective of common stockholders, calculated by dividing net income available to common shareholders by average common stockholder's equity.