If a research and development cost has alternative future uses, then the company
A) expenses the cost in the period incurred.
B) follows normal accrual procedures.
C) adds the cost to inventory.
D) adds the cost to property, plant, and equipment.

Question

Quizplus · Accepted Answer

Research and development costs that have alternative future uses are capitalized and amortized over their useful lives, following normal accrual accounting procedures, rather than being expensed in the period incurred.

If a Research and Development Cost Has Alternative Future Uses