Which of the Following Is Not a Typical Internal Control

question 54

Multiple Choice

Which of the following is not a typical internal control over intangible assets?

• A)Procedures to provide reasonable assurance that decisions are appropriately made as to when to capitalize or expense research and development expenditures.
• B)Development of amortization schedules that reflect the remaining useful life of patents or copyrights associated with the assets.
• C)Procedures to identify and account for intangible asset impairment.
• D)All of the above are typical controls for intangible assets.

---

Definitions:

Output

The quantity of goods or services produced in a given time period.

Total Fixed Costs

The sum of all costs required to produce any level of output that do not change with the quantity produced, such as rent or salaries.

Workers

Individuals engaged in physical or mental activities aimed at producing goods or providing services in exchange for wages.

AVC

Stands for Average Variable Cost, which is the per-unit cost of production excluding fixed costs, changing with the level of output.