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:

Depth Perception

Depth Perception is the visual ability to perceive the world in three dimensions and to judge the distance of objects accurately.

Continuity

The continuous and steady presence or functioning of something throughout a duration of time.

Perceptual Constancy

Perceiving objects as unchanging (having consistent color, brightness, shape, and size) even as illumination and retinal images change.

Figure-Ground

The organization of the visual field into objects (the figures) that stand out from their surroundings (the ground).