Under both variable and absorption costing, research and development costs are period costs.

Name: Under both variable and absorption costing, research and development costs are period costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Research and development costs are considered period costs because they are expensed in the period that they are incurred and do not become a part of the cost of goods sold. Both variable and absorption costing treat these costs as period costs.

Under Both Variable and Absorption Costing, Research and Development Costs