For external reporting, inventoriable costs under GAAP sometimes include R&D costs.

Name: For external reporting, inventoriable costs under GAAP sometimes include R&D costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventoriable costs under GAAP generally include direct materials, direct labor, and overhead costs incurred to produce or acquire inventory. R&D costs are considered period costs, which are expensed in the period they are incurred and not included in the cost of inventory.

For External Reporting, Inventoriable Costs Under GAAP Sometimes Include R&D