Purchased Computer Software Should Be

question 20

Multiple Choice

Purchased computer software should be:

• A) recognised as an asset and recorded at cost
• B) amortised over its useful life
• C) subject to an impairment test
• D) all of the above

Understand the concept of flexible and static budgets.

Identify the appropriate activity measure for overhead allocation.

Calculate total overhead costs at different levels of activity.

Determine predetermined fixed overhead rates.

---

Definitions:

Price-elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in its price.

Digital Media

A form of media that uses digital technology for distribution and presentation of content.

iPads

A line of tablet computers designed and marketed by Apple Inc., which run the iOS and iPadOS mobile operating systems.

Laptop

A portable personal computer with a screen and keyboard, designed for mobile use and small enough to rest on the user's lap.