All of the following are typically costs that fail the future benefits test of long-lived operating assets except:
A) costs related to research and development
B) costs related to marketing
C) costs related to brand-building activities
D) costs of equipment used in production

Question

Quizplus · Accepted Answer

Costs of equipment used in production typically have future benefits beyond the current period, as they are necessary for ongoing operations and production. On the other hand, costs related to research and development, marketing, and brand-building activities may not have future benefits that justify their current expense, and therefore may fail the future benefits test of long-lived operating assets.

All of the Following Are Typically Costs That Fail the Future