Which of the Following Statements Is Correct with Respect to Research

question 26

Multiple Choice

Which of the following statements is correct with respect to research and development expenditures in accordance with AASB 138?

• A) Activities aimed at obtaining knowledge that is likely to produce a viable commercial product can be capitalised.
• B) Formulation, design, evaluation and final selection of alternative materials to be used in producing a viable commercial product can be capitalised.
• C) Design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial production can be capitalised.
• D) Search for, evaluation and final selection of, applications of research findings and other knowledge can be capitalised.
• E) All of the given answers.

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Definitions:

Economic Resources

Assets, natural resources, human resources, and capital that can be used for producing goods and services.

Uniform Crime Report

An official measure of crime in the United States, produced by the FBI’s official tabulation of every crime reported by more than 18,000 law enforcement agencies.

Murder

The intentional and unlawful killing of another person.

Societal Goals

Collective aims or objectives pursued by a society, which can include economic prosperity, social welfare, environmental sustainability, and cultural enrichment.