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

Question

Quizplus · Accepted Answer

Research and development costs are typically expensed as incurred under U.S. GAAP and IFRS, as they do not meet the criteria for capitalization.

Research and Development Costs