The Term Applied to the Amount of Cost to Transfer

question 137

Multiple Choice

The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is

• A) amortization
• B) depletion
• C) depreciation
• D) allocation

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Definitions:

Work in Progress

Inventory that has begun the manufacturing process but is not yet completed.

Merchandise Inventory

The total cost of all the goods a company intends to sell to customers that are available at any given time, reflected as a current asset on the balance sheet.

Raw Materials

Relates to the basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing finished goods.

Physical Possession

The actual holding or occupying of an object, property, or asset by an individual or entity.