Which of the Following Research and Development Related Costs Should

question 44

Multiple Choice

Which of the following research and development related costs should be capitalized and amortized over current and future periods?

• A)research and development general laboratory building which can be put to alternative uses in the future
• B)inventory used for a specific research project
• C)administrative salaries allocated to research and development
• D)research findings purchased from another company to aid a particular research project currently in process

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Definitions:

Vigor

Physical strength, good health, and energy, often used to describe a robust level of activity or vitality.

Olds and Milner

Psychologists known for their discovery of the "pleasure center" in the brain through experiments involving electrical stimulation of the rat brain.

Physiological

Relating to the branch of biology that deals with the normal functions of living organisms and their parts.

Electrodes

Conductive materials or devices that are used to establish electrical contact with a nonmetallic part of a circuit, often used in scientific and medical applications to record or stimulate electrical signals.