The allocation of the cost of a tangible fixed asset is referred to as , whereas the allocation of the cost of an intangible asset is referred to as . (Enter one word per blank.)

Intangible assets are initially measured at cost. Similar to tangible assets, cost includes the acquisition price and all other expenditures necessary in making the asset ready for its intended use. Intangible assets may be acquired from another entity or can be generated internally.Group of answer choicesTrueFalse

Total cost is composed of both:Question 10Answera.Fixed costs and variable costs.b.Marginal costs and average costs.c.Explicit costs and implicit costs.d.Accounting costs and economic costs.

In a lump-sum purchase of assets, the cost must be allocated to the individual assets becauseMultiple choice question.intangible assets must be identified and expensed.goodwill must be expensed immediately.the assets have different useful lives.

Which of the following best describes a fixed cost? A cost which:Represents a fixed proportion of total costsRemains at the same level up to a particular level of outputHas a direct relationship with output.Remains at the same level when output increases.

When preparing a flexible budget, variable costs are expressed as a constant amount _____, and fixed costs are expressed as a constant amount _____.