U.S. GAAP requires that firms expense costs during a research phase but allows firms to capitalize development-phase costs under certain conditions.

Name: U.S. GAAP requires that firms expense costs during a research phase but allows firms to capitalize development-phase costs under certain conditions.
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Question

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Under U.S. GAAP, both research and development costs must be expensed as incurred, and there is no provision for capitalizing development-phase costs.

US GAAP Requires That Firms Expense Costs During a Research