Research and development costs are
A) capitalized and depreciated over the period which they benefit.
B) expensed as incurred.
C) added to the cost of the invented product.
D) added to the cost of the invented product if a reliable date of actual production is known.

Question

Quizplus · Accepted Answer

Research and development costs are expensed as incurred according to most accounting standards, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in the United States. This treatment reflects the uncertainty of future economic benefits from these expenditures.

Research and Development Costs Are