Which of the Following Principles Best Describes the Current Method

question 13

Multiple Choice

Which of the following principles best describes the current method of accounting for research and development costs?

• A) Immediate recognition as an expense
• B) Systematic and rational allocation
• C) Income tax minimization
• D) Associating cause and effect

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Definitions:

Work Sharing

Reducing the number of hours employees work to avoid layoffs when there is a reduction in normal business activity.

Management Objectives

Specific goals set by a management team to guide the operations and direction of a company or organization.

Compressed Workweek

An alternative work schedule in which employees work fewer than the normal five days a week but still put in a normal number of hours per week.

Peter Drucker

An Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.