Which of the following costs would not be capitalized?
A) Acquisition cost of equipment to be used on current and future research projects.
B) Engineering costs incurred to advance the project to the full production stage.
C) Cost incurred to file for patent.
D) Cost of testing prototype before economic feasibility has been demonstration.

Question

Quizplus · Accepted Answer

Costs incurred before economic feasibility has been demonstrated cannot be capitalized as they are considered research and development expenses. All other options involve costs that may be capitalized.

Which of the Following Costs Would Not Be Capitalized