Which of the following statements concerning research and development costs is not true?
A)All research costs should be expensed as incurred.
B)Development costs with probable future benefits should be capitalized.
C)All development costs should be capitalized.
D)Lab research aimed at the discovery of new knowledge is considered to be research.

Question

Quizplus · Accepted Answer

Not all development costs should be capitalized. Only development costs with probable future benefits, such as those related to the creation or improvement of a product or process, should be capitalized. Costs related to ongoing operations or maintenance should be expensed as incurred. Option A is true because all research costs should be expensed as incurred. Option B is true because development costs with probable future benefits should be capitalized. Option D is also true because lab research aimed at the discovery of new knowledge is considered to be research.

Which of the Following Statements Concerning Research and Development Costs