If a Company Constructs a Laboratory Building to Be Used

question 58

Multiple Choice

If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as

• A)amortization deducted as part of research and development costs.
• B)research and development expense in the period(s)of construction.
• C)amortization or immediate write-off, depending on company policy.
• D)an expense at such time as productive research and development has been obtained from the facility.

---

Definitions:

Informational Social Influence

The influence to conform with a group's behavior based on the belief that the group is competent and has the correct information.

Normative Social Influence

A type of social influence that leads individuals to conform in order to be liked and accepted by the group.

Social Facilitation

The tendency for people to perform better on simple tasks or skills in the presence of others.

Collectivist Cultures

Societies that prioritize the needs and goals of the group over individual desires, emphasizing interdependence, family ties, and social harmony.