Which of the following costs normally is expensed in the year incurred,regardless of the extent of future benefit?
A)Technology
B)Customer lists
C)Research and development
D)Leasehold improvements

Question

Quizplus · Accepted Answer

Research and development costs are typically expensed in the year incurred, regardless of the extent of future benefit. This is because it is difficult to determine the future benefits of research and development, and the costs are incurred for the purpose of developing new products or improving existing ones. Technology, customer lists, and leasehold improvements may have future benefits that can be measured and therefore may be capitalized and depreciated over their useful lives.

Which of the Following Costs Normally Is Expensed in the Year