What Factor Will Not Affect the Estimated Useful Life of a Finite

question 41

Multiple Choice

What factor will not affect the estimated useful life of a finite lived intangible asset?

• A)Legal life of the asset.
• B)Technological obsolescence.
• C)Physical condition of the asset.
• D)Certainty of future cash flows.

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Definitions:

Gross Profit

Sales minus the cost of goods sold.

Volume Variance

A measure used in budgeting and accounting to illustrate the difference between expected sales volume and actual sales volume.

Standard Costs

Predetermined costs for manufacturing a product or delivering a service, used as targets or benchmarks.

Variances

The differences between planned, budgeted, or standard costs and actual costs.