Under GAAP,research and development costs are capitalized once a product or process has been developed.

Question

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Research and development costs are usually expensed as incurred under GAAP unless they meet certain criteria for capitalization, such as having future economic benefits and a determined lifespan. Once a product or process has been developed, any remaining costs associated with it may be capitalized.

Under GAAP,research and Development Costs Are Capitalized Once a Product