Examples of expenditures that are not part of the cost of an intangible asset include:
A)costs of testing that the asset is functioning properly
B)costs of employee benefits arising directly from bringing the asset to its working condition
C)costs of conducting business in a new location or with a new class of customer
D)none of the above

Question

Quizplus · Accepted Answer

The costs of conducting business in a new location or with a new class of customer are not part of the cost of an intangible asset. The costs of testing that the asset is functioning properly and costs of employee benefits arising directly from bringing the asset to its working condition are part of the cost of an intangible asset.

Examples of Expenditures That Are Not Part of the Cost