Research and development costs are
A)treated as an expense when incurred.
B)capitalized but not amortized.
C)capitalized and amortized over the periods that will probably benefit from the research and development.
D)included with the cost of the patent resulting from the research and development.

Question

Quizplus · Accepted Answer

Research and development costs are expensed as incurred according to most accounting standards, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in the United States. This treatment reflects the uncertainty of future economic benefits from these expenditures.

Research and Development Costs Are