For traditional costing purposes,R&D costs are
A)capitalized and allocated over the product life cycle.
B)expensed as incurred.
C)capitalized and amortized over three years.
D)charged to the future accounting periods that receive the benefit of the R&D expenditures.

Question

Quizplus · Accepted Answer

R&D costs are expensed as incurred for traditional costing purposes. This means that the cost is recognized in the period in which it is spent, rather than being spread out over multiple periods. This method provides a more accurate picture of the company's current expenses and profitability.

For Traditional Costing Purposes,R&D Costs Are