Research and development costs
A)are classified as intangible assets.
B)must be expensed when incurred under generally accepted accounting principles.
C)should be included in the cost of the patent they relate to.
D)are capitalized and then amortized over a period not to exceed 20 years.

Question

Quizplus · Accepted Answer

Under generally accepted accounting principles (GAAP), research and development costs must be expensed in the period they are incurred, rather than being capitalized.

Research and Development Costs