What Is the Primary Reason for Technology Licensing to Take

question 85

Multiple Choice

What is the primary reason for technology licensing to take place while a product is still in the developmental stage?

• A)to enable the licensor to receive some earnings in case the technology never becomes operative
• B)to ensure that a product launches in various countries at about the same time
• C)to gain funds to complete the development
• D)to reduce transaction costs

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Definitions:

Work in Process Inventory

Represents the costs of unfinished goods in manufacturing at various stages of production.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services, not including indirect labor costs like maintenance.

Work in Process Costs

Costs assigned to goods that are in the process of being manufactured but are not yet complete.

Manufacturing Costs Assigned

The allocation of manufacturing costs to individual products or job orders based on direct materials, direct labor, and applied overhead.