In what way(s)can R&D costs be reported in an income statement organized by function?
A) R&D expenses are reported as a separate function,item or line.
B) R&D is not identified as such but is included in another function,such as selling,general and administrative expenses.
C) R&D is not reported as such but since it has incurred expense,it becomes a part of the cost of goods sold.
D) All of these are correct.

Question

Quizplus · Accepted Answer

R&D costs can be reported in various ways in an income statement organized by function: as a separate line item, included in another function like selling, general and administrative expenses, or as part of the cost of goods sold, depending on the accounting policies of the company and the requirements of the applicable accounting standards.

In What Way(s)can R&D Costs Be Reported in an Income