Given Below Are Costs Incurred During 2012 and 2013 by a Company

question 143

Essay

Given below are costs incurred during 2012 and 2013 by a company that follows the policy of decreasing the intangible asset account directly as amortized.Research was conducted to discover a new product and costs of $400,000 in 2012 and $800,000 in 2013 were incurred. After several months, a product was created and a patent secured for a cost of $180,000, effective as of July 1, 2013. The company expects to have increased revenues of $500,000 over the next several years. The patent is expected to be useful for the next 10 years.

Explain the significance of technological advancements on production costs.

Identify conditions under which a natural monopoly occurs and the role of learning in cost reduction over time.

Understand the components and relevance of intelligence tests, including their reliability, predictive validity, and cultural bias.

Grasp the genetic and environmental influences on intelligence; heritability aspects.

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Definitions:

Process of Entry

refers to the steps or actions that need to be taken for a new competitor to enter into an existing market.

Price

The financial expectation, obligation, or contribution made as payment for something.

Rational Criterion

A principle or standard used in decision-making processes that is based on logic, reason, and the anticipation of outcomes to achieve the most beneficial result.

Fixed Cost

Expenses that do not change with varying levels of production.