Which of the Following Statements Concerning Research and Development Costs

question 74

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:

Esophagus

The tube leading from the pharynx to the stomach.

African American

A demographic group in the United States characterized by having ancestry from the native populations of Sub-Saharan Africa, with a rich cultural heritage and history.

European American

A term referring to Americans of European ancestry or origin.

Breast Cancer

A disease characterized by the abnormal growth of cells within the breast tissue.