In accounting for internally generated intangible assets, U.S. GAAP requires that
A) all costs, no matter how immaterial, be capitalized.
B) only material costs be capitalized.
C) planned costs be capitalized, while costs in excess of plan be expensed.
D) all costs be expensed.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, costs associated with internally generated intangible assets are required to be expensed as incurred. This includes research and development costs, which cannot be capitalized but must be recognized as expenses in the period in which they are incurred.

In Accounting for Internally Generated Intangible Assets, U