GAAP Require That Research and Development Costs to Develop a New

question 202

Multiple Choice

GAAP require that research and development costs to develop a new product be

• A)capitalized in the patents account.
• B)expensed in the period incurred.
• C)capitalized in the research and development costs account.
• D)amortized over the expected economic life of the new product.

---

Definitions:

Sensorimotor Stage

Piaget’s first stage of cognitive development, in which the infant uses its senses and motor abilities to interact with objects in the environment.

Piaget's

Piaget's refers to the developmental theory formulated by Jean Piaget, which outlines how children's cognitive abilities evolve through distinct stages as they grow.

Elisabeth Kübler-Ross

A Swiss-American psychiatrist best known for her groundbreaking work on the five stages of grief.

Three Stages

Refers generally to models or theories that divide a process or series of events into three distinct phases, but requires context to specify which model or process.