intangibles - toa

Problem 40-1 Multiple Choice (PAS 38)1. An intangible asset is defined asa. An identifiable asset without physical substance.b. A nonmonetary asset without physical substance.c. An identifiable nonmonetary asset without physical substance.d. An identifiable monetary and nonmonetary asset without physical substance.

2. An intangible asset is identifiable whena. It is separable.b. It arises from contractual and other legal right.c. It is either separable or it arises from contractual and other legal right.d. It is neither separable nor it arises from contractual and other legal right.

3. Which of the following statements is true in relation to control by the entity of the intangible asset?a. The capacity of the entity to control the economic benefits from an intangible asset would normally stem from legal rights that are enforceable in a court of law. b. The skill of employees arising out of the benefits of training costs cannot be recognized as intangible asset.c. Market share and customer loyalty cannot normally be recognized as intangible asset because an entity cannot control the action of customers.d. d. All of these statements are true.

4. An intangible asset shall be recognized ifa. It is probable that future economic benefits attributable to the asset will flow to the entity.b. The cost of the intangible asset can be measured reliably.c. It is possible that future economic benefits attributable to the asset can be measured reliably.d. It is probable that future economic benefits attributable to the asset can be measured reliably.

5. Which of the following statements is true concerning separate acquisition of an intangible asset?a. If an intangible asset is required separately, the cost of the intangible asset can usually be measured reliably.b. If payment for an intangible asset is deferred beyond normal credit terms, the cost is equal to the cash price equivalent.c. The cost of a separately acquired intangible asset comprises the purchase price and any directly attributable cost of preparing the asset for the intended use.d. All of these statements are true.

6. Which of the following statements is incorrect concerning acquisition of an intangible asset as part of a business combination?a. The cost of the intangible asset is based on the fair value at the date of acquisition.b. If there is an active market for the intangible asset, the fair value is equal to the quoted price of an identical asset.c. If there is an active market for the intangible asset, the fair value may also be equal to the quoted price of a similar asset.d. The fair value of an identifiable intangible asset acquired in a business combination cannot be measured with sufficient reliability separately from goodwill.

7. Which of the following statements is truein relation to internally generated intangible asset?a. Internally generated brand, masthead, publishing title, and customer list shall not be recognized as an intangible asset.b. The cost of internally generated intangible asset comprises all directly attributable costs necessary to create, produce and prepare the asset for the intended use.c. Internally generated goodwill shall not be recognized as an intangible asset. d. All of these statements are true.

8. The cost of an internally generated intangible asset includes all of the following, excepta. Expenditure on materials used in generating the intangible asset.b. Compensation costs of personnel directly engaged in generating the asset.c. Fees to register a legal right. d. Expenditure to on training staff to operate asset.

9. All of the following expenditures are expensed when incurred, excepta. Startup costs.b. Advertising and promotion costs.c. Business relocation or reorganization costs.d. Payment in advance of delivery of goods or the rendering of services.

10. Which of the following statements is true concerning amortization and impairment of intangible assets?a. Intangible assets with finite useful life are amortized over the useful life.b. Intangible assets with finite useful lifer are tested for impairment at the end of reporting period when there is an indication of impairment.c. Intangible assets with indefinite useful life are not amortized but are tested for impairment at least annually. d. d. All of these statements are true.

Answers: Problem 40-1

1. C6. D2. C7. D3. D8. D4. D9. D5. D10. D

Problem 40-2 Multiple Choice (PAS 38)1. It is the systematic allocation of the amortizable amount of an intangible asset over the useful life.a. Amortizationb. Allocationc. Realizationd. Expiration

2. The amortization method used shall reflect the pattern in which the assets economic benefits are consumed by the entity. If such pattern cannot be determined reliably, what is the amortization method used?a. Straight lineb. Production methodc. Diminishing balance methodd. Ratio of current years sales to the expected sales

3. The factors that need to be considered in determining the useful life of an intangible asset include all of the following, excepta. Technical obsolescenceb. Expected action of competitorsc. Expected usage of the asset by the entityd. Residual value

4. An intangible asset is regarded as having an indefinite useful life whena. There is no foreseeable limit to the period over which the asset is expected to generate net cash inflows to the entity.b. There is a foreseeable limit to the period over which the asset is expected to generate net cash inflows to the entity.c. The useful life of the intangible asset arises from contractual right.d. The useful life of the intangible asset arises from legal right.

5. The residual value of an intangible asset with a finite useful life shall be assumed zero, excepta. When there is a commitment by a third party to purchase the asset at the end of the useful life.b. When there is an active market for the asset and it is probable that such market will exist at the end of the useful life.c. When there is a commitment by a third party to purchase the asset at the end of the useful life or there is an active market for the asset and it is probable that such market will exist at the end of useful life.d. There are no exceptions.

6. An intangible asset acquired by way of government grant may be initially recorded ata. Fair valueb. Nominal amount or zero plus any directly attributable expenditurec. Either fair value or nominal amount or zero plus directly attributable expenditure.d. Neither fair value nor nominal account.

7. The cost of a separately acquired intangible asset comprises the purchase price, including import duties and nonrefundable purchases taxes, anda. Cost of introducing a new product or service.b. Cost of conducting a business in a new location.c. Administration and other general overhead costd. Directly attributable cost of preparing the asset for the intended use.

8. Directly attributable costs of preparing the intangible asset for the intended use include all, excepta. Cost of employee benefits arising directly from bringing the asset to working condition.b. Professional fee arising directly from bringing the asset to working condition.c. Cost of testing whether the asset is functioning properly.d. Initial operating loss.

9. After initial recognition, an intangible asset shall be measured using thea. Cost modelb. Revaluation modelc. Either cost model or revaluation modeld. Either cost model or fair value model

10. Which of the following represents the maximum amortization period mandated for an intangible asset with finite useful life?a. 10 yearsb. 20 yearsc. 40 yearsd. No arbitrary cap on the useful life has been established.


1. A6. C2. A7. D3. D8. D4. A9. C5. C10. D

Problem 40-3 Multiple Choice (IFRS)1. Which does not qualify as an intangible asset?a. Computer softwareb. Registered patentc. Copyrightd. Notebook computer2. Which of the following would qualify as an intangible asset?a. Advertising and promotionb. College tuition fees paid to employees who decide to enroll in an exclusive M.B.A program while working with the entityc. Operating loss during the initial stage of the projectd. Legal cost paid to lawyer to register a patent

3. Once recognized, an intangible asset can be carried ata. Cost less accumulated amortizationb. Cost less accumulated amortization and impairment lossesc. Revalued amount less accumulated amortizationd. Cost plus a notional increase in fair value

4. Which disclosure is not required with respect to an intangible asset?a. Useful life of the intangible assetb. Reconciliation of carrying amount at the beginning and end of the yearc. Contractual commitment for the acquisition of intangible assetd. Fair value of similar intangible asset used by competitor

5. Which is not a consideration in determining the useful life of an intangible asset?a. Legal, regulatory or contractual provisionb. Provision for renewal or extensionc. Initial costd. Obsolescence

6. Amortization of an intangible asset with a finite useful life shall commence whena. It is first recognized as an asset.b. It is probable that it will generate economic benefit.c. It is available for intended use.d. The cost can be identified with reasonable certainty.

7. A brand name that was acquired separately shall initially be recognized at a. Recoverable amountb. Either cost or fair value at the choice of the acquirer c. Fair valued. Cost

8. The recognition criteria for an intangible asset include which of the following conditions?a. The intangible asset must be measured at cost.b. The cost can be measured reliably.c. It is probable that future economic benefit will arise from use.d. It is probable that future economic benefit will arise from use and the cost can be measured reliably.

9. What is the appropriate method of amortizing intangible asset?a. The straight line method, unless the pattern in which the economic benefits are consumed can be determined reliably.b. The double declining balance in all circumstances.c. A subjective amount of periodic amortization.d. The straight liner method in all circumstances.

10. Intangible assets with indefinite useful life are tested for impairmenta. Quarterly at the quarterly reporting dateb. Annually at the annual reporting datec. Biannually at the reporting dated. There is no guidelines for impairment


1. D6. C2. D7. D3. B8. D4. D9. A5. C10. B

Problem 40-4 Multiple Choice (IFRS)1. Intangible assets are reported in the statement of financial positiona. With an accumulated amortization accountb. Under property, plant and equipmentc. As a separate line itemd. All of these are allowed in presenting intangible assets

2. An entity that acquires an intangible asset may use the revaluation model for subsequent measurement only ifa. The useful life of the intangible asset can be reliably determinedb. An active market exists for the intangible asset.c. The cost of the intangible asset can be measured reliably.d. The intangible asset is a monetary asset.

3. Which of the following is a criterion that must be met in order for an intangible asset to be recognized other than goodwill?a. The fair value can be measured reliably.b. The asset is the part of the activities aimed at gaining new scientific or technical knowledge.c. The asset is expected to be used in the production or supply of goods or services.d. The asset is identifiable and lacks physical substance.

4. Operating losses incurred during the start-up years of a new entity should bea. Accounted for and reported like any other operating losses.b. Written off directly against retained earnings.c. Capitalized as deferred charge and amortized over five years.d. Capitalized as an intangible asset and amortized over twenty years.


1. C2. B3. D4. A

Problem 40-5 Multiple Choice (IAA)1. Which of the following does not describe an intangible asset?a. The asset lacks physical existence.b. The asset is monetary.c. The asset provides long-term benefit.d. The asset is classified as non-current asset.

2. Which of the following is a characteristic of an intangible asset?a. Physical existenceb. Claim to a specific amount of cash in the futurec. Long-livedd. Held for sale

3. Cost incurred internally to create intangible asset area. Capitalizedb. Capitalized if useful life is indefinitec. Expensed when incurredd. Expensed if useful life is limited

4. Which of the following methods of amortization is normally used for an intangible asset?a. Sum of the years digitb. Straight linec. Units of productiond. Double declining balance

5. Under current accounting practice, intangible assets are classified asa. Amortizable and un-amortizableb. Limited life and indefinite lifec. Specifically identifiable and goodwill typed. Legally restricted and goodwill type

6. Which type of intangible asset is amortized?a. Limited lifeb. Indefinite lifec. Both limited life and indefinite lifed. Neither limited life nor indefinite life

7. Entities should evaluate indefinite life intangible assets at least annually fora. Recoverabilityb. Amortizationc. Impairmentd. Estimated useful life

8. The major problem of accounting for an intangible asset is determining a. Fair valueb. Separabilityc. Residual valued. Useful life

9. The factors in determining the useful life of an intangible asset include all of the following, excepta. The expected use of the asset.b. Any legal or contractual provision that may limit the useful life.c. Any provision for renewal or extension of legal life of the asset.d. The amortization method used.

10. Which of the following is not an intangible asset?a. Trade name b. Research and development costc. Franchised. Copyright


1. B6. A2. C7. C3. C8. D4. B9. D5. B10.B

Problem 41-1 Multiple Choice (IAA)1. Patent is an example of which general category of intangible asset?a. Market-relatedb. Customer-relatedc. Artistic-relatedd. Technology-based

2. A patent should be amortized overa. Twenty yearsb. The useful lifec. The useful life or twenty years, whichever is longerd. The useful life or twenty years, whichever is shorter

3. When a patent is amortized, the credit is usually made toa. The patent accountb. An accumulated amortization accountc. An accumulated depreciation accountd. The expensed account

4. The cost of successfully depending a patent from infringement by a competitor should be charged to a. Patent and amortized over the legal life of the patent.b. Legal fees and amortized over five years.c. Expensed of the period.d. Amortized over the remaining useful life of the patent.

5. The cost of purchasing right for a product that might otherwise have seriously competed with the purchasers patented product should bea. Expensed in the current period.b. Amortized over the legal life of the purchased patent.c. Added to factory overhead.d. Amortized over the remaining useful life of the patent for the product whose market would have been impaired be competition from the newly patented product.


1. D2. D3. A4. C5. D

Problem 41-2 Multiple Choice (AICPA Adopted)1. Goodwill shall be recognized only when a. It is purchased from another entityb. It can be established that a definite benefit has resulted from good name, capable staff or reputationc. It is acquired through the purchase of another entityd. An entity had above normal earnings for five years

2. What does the standard require with respect to accounting for goodwill?a. Goodwill should be amortized over a five-year period.b. Goodwill should be amortized over the useful life.c. Goodwill should be recorded and never adjusted.d. Goodwill should be periodically evaluated for impairment.

3. Goodwill should be tested periodically for impairmenta. For the entity as a wholeb. At the subsidiary levelc. At the industry segment leveld. At the operating segment level

4. In performing an annual test for the impairment of goodwill for a cash generating unit, the fair value of the unit exceeds the carrying amount. Which statement is true concerning the test of impairment?a. Impairment is not indicated and no analysis is necessary.b. Goodwill should be written down as impaired.c. The assets should be valued to determine if there has been an impairment of goodwill.d. Goodwill should be retested at the entity level.

5. An impairment loss recognized for goodwilla. Shall not be reversed in a subsequent year.b. May be reversed fully in a subsequent year.c. May be reversed partly in a subsequent year.d. Shall be reversed in a subsequent year.


1. C2. D3. D4. A5. A

Problem 41-3 Multiple Choice (IAA)1. Purchased goodwill shoulda. Be written off against retained earnings.b. Be written off as other expense.c. Be written off by systematic charge as operating expense over the period benefited.d. Not be amortized.

2. The intangible asset goodwill may be a. Capitalized only when purchased.b. Capitalized either when purchased or created internally.c. Capitalized only when created internally.d. Written off directly against retained earnings.

3. In a business combination, the excess of acquisition cost over the fair value of the identifiable net assets acquired isa. Other assetb. Indirect costc. Goodwilld. A bargain purchase

4. Goodwill shall be tested for impairmenta. If there is an indication of impairmentb. Annuallyc. Every 5 yearsd. On the acquisition of a subsidiary

5. Which intangible asset should be reported as a separate line item in the statement of financial position?a. Goodwillb. Franchisec. Patentd. Trademark


1. D2. A3. C4. B5. A

Problem 41-4 Multiple Choice (IAA)1. A trademark is an example of which general category of intangible asset?a. Market-relatedb. Customer-relatedc. Artistic-relatedd. Contract-based

2. Which of the following costs associated with a trademark should not be capitalized?a. Attorney feeb. Consulting feec. Research and development feed. Design cost

3. Which of the following should not be capitalized as cost of trademark?a. Cost of successful litigation of the trademarkb. Registration with Intellectual Property Officec. Design costd. Legal fee

4. What is the legal life of trademark?a. 10 yearsb. 20 yearsc. 10 years and renewable after every 10 yearsd. 20 years and renewable after every 20 years

5. Which of the following statements is incorrect in relation to trademark?a. A trademark can be regarded as an intangible asset with an indefinite useful life.b. A trademark is an intangible asset.c. A trademark is not amortized but tested for impairment at least annually.d. A trademark is amortized and tested for impairment whenever there is an indication of impairment.


1. A2. C3. A4. C5. D

Problem 42-1 Multiple Choice (IAA)1. A copyright is an example of which general category of intangible asset?a. Market-relatedb. Customer-relatedc. Artistic-relatedd. Contract-based

2. Franchise and broadcast rights are an example of which general category of intangible asset?a. Market-relatedb. Customer-relatedc. Artistic-relatedd. Contract-based

3. Customer list and order backlog are an example of which general category of intangible asset?a. Market-relatedb. Customer-relatedc. Artistic-relatedd. Contract-based

4. Copyright should be amortized overa. The legal lifeb. The life of the creator plus fifty yearsc. Twenty yearsd. The useful life or legal life, whichever is shorter

5. Which of the following intangible assets should not be amortizeda. Copyrightb. Customer listc. Perpetual franchised. All of the intangible assets should be amortized

6. Which of the following should be expensed as incurred by the franchisee for a franchise with finite useful life?a. Amount paid to the franchisor for the franchiseb. Payment to an entity, other than the franchisor, for that entitys franchiseec. Legal fees paid to the franchisees lawyers to obtain the franchised. Periodic payments to the franchisor based on the franchisees revenue

7. An airline entity purchased airline gate rights at an international airport with a legal life of five years. However, the entity has the ability and right to extend the rights every ten years for an indefinite period of time. Over what period of time should the entity amortize the gate right?a. 5 yearsb. 15 yearsc. 40 yearsd. The rights should not be amortized

8. A lessee incurred cost to construct walkway and landscaping to improve leased property. The useful life of the walkway and landscaping cost is fifteen years. The remaining term of the non-renewable lease is twenty years. The walkway and landscaping cost should bea. Capitalized as leasehold improvement and depreciated over twenty years.b. Capitalized as leasehold improvement and depreciated over fifteen years.c. Capitalized as leasehold improvement and expensed in the year in which the lease expires.d. Expensed as incurred.

9. Start-up cost including legal and state fees to organize a new entity should bea. Capitalized and never amortized.b. Capitalized and amortized over a reasonable period.c. Capitalized and tested for impairment annually.d. Expensed as incurred.

Answers: Problem 42-11. C6. D2. D7. D3. B8. D4. D9. D5. C

Problem 42-2 Multiple Choice (IFRIC 12)1. 1. It is an arrangement whereby a public sector entity grants a private concession operator to provide services that give the public access to major economic and social infrastructure, such as expressway and telecommunication network.a. Service concessionb. Loanc. Government grantd. Government assistance

2. The private concession operator shall recognize the infrastructure asset asa. Intangible assetb. Financial assetc. Either intangible asset or financial assetd. Neither intangible nor financial asset

3. The infrastructure asset shall be recognized by the concession operator as an intangible asset whenI. The operator has received a right or a license to charge users for the public service.II. The right to change the users for the public service is not an unconditional right because the revenue receivable is not agreed upon in advance but is dependent on the use of the asset.a. I onlyb. II onlyc. Both I and IId. Neither I nor II

4. The infrastructure asset shall be recognized by the concession operator as a financial asset whenI. The operator has an unconditional contractual right to receive cash over the life of the arrangement.II. The grantor has contractually guaranteed to pay the operator the specified or determinable amount.a. I onlyb. II onlyc. Both I and IId. Neither I nor II

5. The infrastructure asset recognized by the private concession operator as a financial asset should be accounted for asa. Financial asset at amortized costb. Financial asset at fair value through profit or lossc. Either financial asset at amortized cost or financial asset at fair value through profit or lossd. Neither financial asset at amortized cost nor financial asset at fair value through profit or loss


1. A2. C3. C4. C5. C

Problem 43-1 Multiple Choice (IFRS)1. Which statement in relation to research and development is incorrect?a. Expenditure during the research phase of a project cannot be capitalized as an intangible assetb. Expenditure during the development phase of project may sometimes be capitalized as an intangible assetc. The project being developed should have already been put into commercial productiond. Development involves the application of research finding

2. A dot-com entity has recently completed a highly publicized research and development project. Which of the following statements is the most accurate?a. Costs incurred during the research phase can be capitalized.b. Costs incurred during the development phase can be capitalized if criteria such as technical feasibility of the project being established are met.c. Training cost of technicians used in research can be capitalized.d. Designing of jigs and tools would qualify as research activities.

3. Which principle best describes the current method of accounting for research and development cost?a. Associating cause and effectb. Systematic and rational allocationc. Income tax minimizationd. Immediate recognition as an expense

4. Web site development costs incurred for the purpose of promoting and advertising a project should bea. Expensed as incurredb. Recognized as an intangible asset with a finite lifec. Recognized as an intangible asset with indefinite lifed. Included as component of other comprehensive income

Answers: Problem 43-11. C2. B3. D4. A

Problem 43-2 Multiple Choice (AICPA Adopted)1. The proper accounting for costs incurred in creating computer software is a. To capitalize all costs until the software is soldb. To charge research and development expense when incurred until technological feasibility has been established for the productc. To charge research and development expense only if the computer software has alternative future use.d. To capitalize all cost as incurred until a detailed program design or working model is created.

2. Which of the following statements is true regarding the proper accounting treatment for internal-use software costs?I. Preliminary costs should be capitalized as incurred.II. Application and development costs should be capitalized as incurreda. I onlyb. II onlyc. Both I and IId. Neither I nor II

3. Which of the following statements is incorrect regarding internal-software?a. The application and development costs of internal-use software should be amortized on the straight line basis unless another systematic and rational basis is more appropriate.b. Internal-use software is considered to be software that is marketed as a separate product or as part of a product or process.c. The costs of testing and installing computer hardware should be capitalized as incurred.d. The costs of training and application maintenance should be expensed as incurred.

4. A computer software purchased as an operating system for the hardware or as an integral part of a computer controlled machine tool that cannot operate without the specific software shall be treated asa. Intangible assetb. Property, plant and equipmentc. Inventoryd. Expense

5. At the beginning of current year, an entity had capitalized cost for a new computer software product with an economic life of four years. Sales for the current year were ten percent of expected total sales of the software. The pattern of future sales cannot be measured reliably. At year-end, the software had a net realizable value equal to eighty percent of the capitalized cost. Thee unamortized cost reported in the year end statement of financial position should bea. Net realizable valueb. Ninety percent of net realizable valuec. Seventy five percent of capitalized costd. Ninety percent of capitalized cost


1. B2. B3. B4. B5. C

Problem 43-3 Multiple Choice (AICPA Adopted)1. Which of the following research and development costs should be capitalized and amortized over current and future periods?a. Research and development general laboratory buildingb. Inventory used for a specific research projectc. Administrative salaries allocated to research and developmentd. Research findings purchased from another entity to aid a particular research project currently in process

2. If an entity constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings asa. Research and development expense in the period of constructionb. Depreciation deducted as part of research and development expensec. Depreciation or immediate write-off depending on entity policyd. An expense at such time as productive research has been obtained from the facility.3. Which of the following research and development costs should be capitalized and amortized over current and future periods?a. Labor and material costs incurred in building a prototype or modelb. Cost of testing equipment that will also be used in another separate research and development project scheduled to begin next yearc. Administrative salaries allocated to research and developmentd. Research findings purchased from another entity to aid a particular research project currently in process

4. A research and development activity for the cost would be expensed as incurred isa. Design, construction and testing of preproduction prototype or modelb. Quality control during commercial productionc. Periodic design changes to existing productd. Adaptation of an existing capability to a particular requirement or customer need

5. 5. Which is not considered a research and development activity?a. Routine ongoing effort to refine, enrich or improve quality of existing productb. Laboratory research aimed at discovery of new knowledgec. Conceptual formulation and design of possible product or processd. Design, construction and operation of a pilot plant.

6. At the beginning of current year, an entity purchased equipment for use in developing a new product. The entity used the straight line depreciation method. The equipment could provide benefits over a 10-year period. However the new product development is expected to take five years, and the equipment can be used only for this project. The expense for the current year in relation to the equipment equalsa. The total cost of the equipmentb. One-fifth of the cost of the equipment c. One-tenth of the cost of the equipmentd. Zero


1. A2. B3. D4. A5. A6. A

Problem 43-3 Multiple Choice (IAA)1. How should research and development be accounted for?a. Must be capitalized when incurred and then amortized over useful lifeb. Must be expensed in the period incurredc. May be either capitalized or expensed when incurred depending upon the materialityd. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future use or unless contractually reimbursable

2. Which of the following statements is true about accounting for development cost?a. Development cost must be expensedb. Development cost is always deferred and expensed against future revenuec. Development may be capitalized as an intangible asset in very restrictive situationsd. Development cost is recorded as component of other comprehensive income

3. Which of the following would be considered research and development?a. Routine effort to refine an existing product b. Periodic alteration to existing production linec. Marketing research to promote new product d. Construction of prototype

4. 4. Which of the following cost should not be capitalized?a. Acquisition cost of equipment cost to be used on current and future research projectsb. Engineering cost incurred to advance the project to the full production stagec. Cost incurred to file for patentd. Cost of testing prototype before economic feasibility has been demonstrated

5. Which of the following cost should be excluded from research and development expense?a. Modification of the design off a productb. Acquisition of research and development equipment for the use on a current project onlyc. Cost of marketing research for a new productd. Engineering activity required to advance the design of a product to the manufacturing stage.

6. Which of the following would not be considered research and development activity?a. Adaptation of an existing capability to a particular requirement or customer needb. Application of research finding or other knowledge to a plan for a new productc. Laboratory research aimed at discovery of new knowledged. Conceptual formulation and design of possible product alternative

7. Which of the following is not a criterion which must be met before development cost may be capitalized?a. The entity has sufficient financial resources to complete the projectb. The entity intends to complete the project and either use or sell the intangible assetc. The entity can reliably identify the research cost incurred to bring the project to economic feasibilityd. The project has achieved technical feasibility

8. Which of the following costs should be capitalized?a. Acquisition cost of equipment to be used on the current research project onlyb. Engineering cost incurred to advance the product to the full production stagec. Cost of research to determine whether a market for the product existd. Salaries of research staff

9. Research activities include all of the following except,a. Search for application of research finding or other knowledgeb. Search for product or process alternativec. Formulation and design of the possible product or process alternatived. Design, construction and testing of preproduction prototype and model

10. Development activities include all of the following except,a. Design of tools, jigs, molds and dies involving new technologyb. Design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial productionc. Design, construction and testing of a chosen alternative for a new or improved product or processd. Laboratory activities aimed at obtaining new knowledge


1. D6. A2. C7. C3. D8. B4. D9. D5. C10.D