Which of the Following Statements Concerning Research and Development Costs

question 58

Multiple Choice

Which of the following statements concerning research and development costs is not true?

• A)All research costs should be expensed as incurred.
• B)Development costs with probable future benefits should be capitalized.
• C)All development costs should be capitalized.
• D)Development costs associated with successful commercial research would be amortized over the useful life of the product or process developed.

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Definitions:

Mobiles

Portable electronic devices with connectivity capabilities, such as smartphones and tablets, used for communication and information access.

Welfare Benefits

Government-provided support to individuals or families, especially those with low incomes, in the form of financial aid or services.

Gross Private Domestic Investment

The total capital investment in an economy by private sector entities, excluding government spending.

Durable Goods

Goods not for immediate consumption that can be used over a period of time, such as appliances, cars, and furniture.