Which of the following costs would be capitalized?
A) Acquisition cost of equipment to be used on current research project only.
B) Engineering costs incurred to advance the product to the full production stage.
C) Cost of research to determine whether a market for the product exists.
D) Salaries of research staff.

Question

Quizplus · Accepted Answer

Engineering costs incurred to advance the product to the full production stage are capitalized because they are directly related to bringing the product to a condition necessary for its intended use.

Which of the Following Costs Would Be Capitalized