Development costs
A) are always expensed when incurred.
B) cannot be recorded separately from research costs.
C) can be capitalized if it can be shown that the costs will provide future benefits.
D) are intangible assets that are not amortized.

Question

Quizplus · Accepted Answer

Development costs can be capitalized if it can be demonstrated that these costs will provide future economic benefits. This involves proving that the project is technically and commercially feasible and that the company intends to complete the development and use or sell the asset.

Development Costs