One benefit of capitalizing R&D is that reductions in current R&D will not affect current operating profits.

Question

Quizplus · Accepted Answer

Capitalizing R&D allows the costs to be spread out over several years instead of being expensed in the current year. This means that reducing current R&D expenses will not have a direct impact on current operating profits, as the costs have already been accounted for in previous years.

One Benefit of Capitalizing R&D Is That Reductions in Current