Question

You have a Program with March set as the period cost. A new lead enters the Program in April. To which period will the lead's acquisition cost be attributed?

A. The period cost associated with the lead's acquisition Program.
B. April.
C. March.
D. The lead's acquisition cost will not be accounted for.

Answer 1

The lead's acquisition cost will be attributed to April.

Step-by-step explanation:

The lead's acquisition cost will be attributed to April. When a new lead enters the Program in April, their acquisition cost will be accounted for in the period in which they entered. In this case, the period cost associated with the lead's acquisition Program will be April, not March.

Acquisition cost attribution refers to the process of assigning costs to the acquisition of assets, goods, or services. This is particularly important in accounting and financial management to ensure accurate reporting of costs associated with acquiring and bringing an asset into use. The goal is to allocate costs to the appropriate accounting periods and to the specific assets or projects they relate to.