Which of the Following Is Not True

question 286

Multiple Choice

Which of the following is not true?

• A) Licensing fees are recognized as revenue over time whenever the seller expects its ongoing activities to affect the benefits that the buyer receives from intellectual property.
• B) License fees are recognized as revenue over time for any license that is viewed as providing a right of access.
• C) License fees are recognized as revenue at a point in time if the buyer expects that the seller's future activities will not affect the benefit the buyer derives from the intellectual property.
• D) Licensing fees are recognized as revenue at the end of the license period, when the seller has completed its performance obligation to provide access to its intellectual property.

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Definitions:

Marginal Cost

The added cost of producing one additional unit of a product or service.

Labor Costs

The total amount of money businesses have to pay to their employees for work done, including wages, salaries, and benefits.

Marginal Cost

The increase in cost resulting from the production of an extra good or service unit.

Total Cost

The sum of all costs associated with the production of a given quantity of output, including both fixed and variable costs.