
Intangible Assets:
Intangible assets are the assets which do not have any physical form of existence but they have value as any other physical asset held by the company. Like any other asset of the company they are being purchased and sold at a specific value. Generally they occur in the form of
Goodwill:
Goodwill is the additional value in the form of premium to the total physical assets of the company. A company’s goodwill is represented in terms of the reputation of its brand, customer satisfaction and trust over the company, company’s relationship with its employees, authorities and any other existing stakeholders, including the patents and copyrights acquired by it.
To explain: If the company plans to incur costs each year to maintain the value of the goodwill whether it should be amortized or not.

Want to see the full answer?
Check out a sample textbook solution
Chapter 10 Solutions
Connect 2-Semester Access Card for Fundamental Accounting Principles
- Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/3 pound of mixed berries, which are expected to cost $7 per pound during the summer months. Shop employees are paid $8 per hour. Variable overhead consists of utilities and supplies. The variable overhead rate is $0.12 per minute of DL time. Each smoothie should require 4 minutes of DL time. 1. What is the standard cost of direct materials for each smoothie? 2. What is the standard cost of direct labor for each smoothie? 3. What is the standard cost of variable overhead for each smoothie?arrow_forwardAt the beginning of the recent period, there were 1,100 units of product in a department, 40% completed. These units were finished, and an additional 6,200 units were started and completed during the period. 900 units were still in process at the end of the period, 30% completed. Using the weighted-average method, the equivalent units produced by the department were: a. 6,200 units. b. 7,100 units. c. 7,370 units. d. 6,800 units. e. 7,570 units.arrow_forwardAssuming no adjusting journal entries are madearrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





