Research and development costs are initially _____.
A)recorded as assets, and written off in a systematic way over a period of years
B)recorded as assets, and are expensed when the goods produced are sold
C)recorded as assets, and are expensed when they are paid in cash
D)expensed

Question

Quizplus · Accepted Answer

Research and development costs are expensed in the period they are incurred, as they do not have future economic benefits that can be reliably measured, and thus cannot be recorded as assets.

Research and Development Costs Are Initially _____