Items Such as Market Knowledge, Effective Advertising Programs, Fundraising Capabilities

question 19

Multiple Choice

Items such as market knowledge, effective advertising programs, fundraising capabilities and trained staff are NOT regarded as assets because they:

• A) are monetary items;
• B) cannot be measured;
• C) are not controlled by the entity;
• D) are too difficult to manage.

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Definitions:

Static Budget

A budget that remains unchanged over the budget period and is not adjusted for actual levels of activity.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, production levels, or other operational factors.

Direct Materials

Raw materials that can be directly traced to the production of goods or services and are considered variable costs.

Fixed Utilities

Charges for basic services like electricity, water, and gas that do not fluctuate greatly with usage levels, often considered part of an organization's fixed overhead.