Intangible Assets May Be Purchased or Developed

question 45

Multiple Choice

Intangible assets may be purchased or developed.If developed,they are categorized as Research and Development and

• A) depreciated over their useful life.
• B) amortized over their useful life.
• C) depleted over their useful life.
• D) expensed.

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Definitions:

Average Fixed Cost

The fixed costs, such as rent or salaries, divided by the number of units produced, calculated over a period of time.

Mixers

Devices or software used for combining, modifying, or creating audio or other media content.

Average Total Cost

The total cost of production divided by the number of units produced, including both fixed and variable costs.

Range of Output

Refers to the variety of products or services produced by a company or industry.