Final answer:
A. Amortization of intangible assets is an application of the principle of systematic and rational allocation, as it involves the gradual writing off of an asset's cost over its useful life.
Step-by-step explanation:
The principle of systematic and rational allocation refers to the process of systematically distributing the cost of an asset over its useful life in a rational and systematic manner. Among the options provided, amortization of intangible assets is an application of this principle. Amortization is the process of gradually writing off the initial cost of an intangible asset over the period it is expected to benefit the company. This method follows a systematic and rational allocation since the expense is recorded in a manner that reflects the asset's consumption over time, thereby matching the expense with the revenue it generates.
On the other hand, sales commissions, research and development costs, and officers' salaries are expensed when incurred and do not typically involve a systematic allocation over time the way amortization does.
When a company acquires intangible assets such as patents or copyrights, they often have a limited lifespan. Amortization is the process of allocating the cost of these assets over their useful life in a systematic and rational manner.
For example, if a company acquires a patent for $100,000 with a useful life of 10 years, they would allocate $10,000 of the cost as an expense each year over the 10-year period. This ensures that the cost of the asset is spread out evenly over its useful life.