The Cost of an Intangible Asset Is Comprised of the Purchase

question 13

Multiple Choice

The cost of an intangible asset is comprised of the purchase price:

• A)less legal costs incurred in the purchase.
• B)plus indirectly attributable costs.
• C)less directly attributable costs.
• D)plus directly attributable costs.

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Definitions:

Effective Cycle

The portion of a process or machine's operational cycle that contributes directly to its intended function or output.

Air Conditioning System

A system designed to control the temperature, humidity, and air purity inside a closed environment.

Centrifugal Clutch

A clutch pack that uses centrifugal force to engage as engine rpm is spooled up and disengages as it spools down; uses a simple ball-and-ramp engagement hub. An example is the Eaton AutoClutch used with the UltraShift AMT.