Research and development costs should be:
A)Expensed in the period incurred.
B)Expensed in the period they are determined to be unsuccessful.
C)Deferred pending determination of success.
D)Expensed if unsuccessful,capitalized if successful.

Question

Quizplus · Accepted Answer

Research and development costs should be expensed in the period incurred according to generally accepted accounting principles. This is because it is difficult to determine the future benefits from research and development activities, making it inappropriate to capitalize the costs. Therefore, it is more appropriate to recognize them as an expense in the period they are incurred.

Research and Development Costs Should Be