The cost of an internally developed unidentifiable intangible is expensed as incurred. Accordingly, which one of the following costs would be expensed in the year it was incurred?
A) legal cost of obtaining a patent
B) cost of improvements with a three-year life made to an asset that is being leased by the company for a five- year period
C) costs of developing new software products with proven technological feasibility
D) Costs of developing knowledge and skill levels for new management-level employees

Question

Quizplus · Accepted Answer

Costs related to developing knowledge and skill levels for new management-level employees are expensed as incurred because they are considered part of the ongoing training and development expenses of a company, not capitalizable intangible assets.

The Cost of an Internally Developed Unidentifiable Intangible Is Expensed