Intangible Assets ________

question 21

Multiple Choice

Intangible assets ________.

• A)always have a definite life
• B)that are purchased are recorded at cost
• C)are always expensed through amortization
• D)with definite lives are tested annually for impairment

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and are significant in cost.

Workman's Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.

Factory Utilities

Costs associated with utilities in a manufacturing plant, such as electricity and water, considered part of manufacturing overhead.

Direct Materials

Raw materials that are directly traceable to the process of creating a finished product.