As Defined by IAS 38, How Are Intangible Assets Unlike

question 35

Multiple Choice

As defined by IAS 38, how are intangible assets unlike other assets?

• A) They must have arisen from past events.
• B) Their value cannot be reasonably measured.
• C) They must be controlled by enterprises.
• D) They are nonmonetary and lack physical substance.

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Definitions:

Variable Costs

Expenses that change in proportion to the amount of goods produced or the volume of sales, including labor and materials.

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, highlighting the scalability of a company’s business model.

Variable Costs

Expenses that vary in relation to the amount of output or business operations.

Fixed Costs

Business expenses that remain constant, regardless of the level of production or sales activity.