All research and development costs related to a firm's products and its production processes must be expensed when incurred.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), research and development (R&D) costs must be expensed in the period in which they are incurred, rather than capitalized. This is because the future economic benefits of R&D efforts are uncertain.

All Research and Development Costs Related to a Firm's Products