Managers are typically faced with all of the following primary choices and estimates when allocating acquisition costs of tangible assets and intangible assets to the periods benefited except:
A) choosing an allocation method
B) estimating useful life
C) estimating salvage value
D) establishing a reserve for obsolescence

Question

Quizplus · Accepted Answer

Establishing a reserve for obsolescence is not a primary choice when allocating acquisition costs of tangible assets and intangible assets to the periods benefited. While it is important to consider potential obsolescence, it is not a part of the initial allocation process. The primary choices include selecting an allocation method, estimating useful life, and estimating salvage value.

Managers Are Typically Faced with All of the Following Primary