Research costs
A)are classified as intangible assets.
B)must be expensed when incurred.
C)should be included in the cost of the asset they relate to.
D)are capitalized and then amortized over their estimated useful life.

Question

Quizplus · Accepted Answer

Research costs must be expensed when incurred according to accounting standards. This is because the future economic benefits of research are uncertain, and capitalizing such costs would not provide a true and fair view of the financial position.

Research Costs