R&D costs are treated as period costs because ________.
A) these costs may increase revenues in the current period
B) these costs may increase revenues in the future period
C) these costs may decrease revenues in the current period
D) these costs are expensed when the goods are sold

Question

Quizplus · Accepted Answer

R&D costs are treated as period costs because they may increase revenues in the future period through the development of new products or improvements to existing products. These costs are not directly related to the manufacture or sale of goods, and therefore, are not expensed when the goods are sold.

R&D Costs Are Treated as Period Costs Because ________