For IAS38 Which of the Following Is NOT Required for Development

question 6

Multiple Choice

For IAS38 which of the following is NOT required for development expenditure to lead to an intangible asset?

• A)technical feasibility of completing saleable output.
• B)the intention to complete saleable output.
• C)the ability to sell the saleable output.
• D)existing customers for the saleable output.

---

Definitions:

Marginal Cost

Is the cost of producing one additional unit of a good or service.

Least-cost Combination

An optimal mix of inputs that minimizes the cost of production while yielding a given level of output.

Net Gain

The difference between total revenues and total expenses, indicating the financial profitability of a transaction or activity.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making at least one individual worse off, typically achieved when the economy effectively allocates resources to where they are most valued.