Research and Development Costs

question 185

Multiple Choice

Research and development costs

• A)Are expenditures that may lead to patents, copyrights, and new products.
• B)Development costs incurred after technological feasibility has been achieved are capitalized and reported on the statement of financial position as an intangible asset.
• C)Costs incurred in the research phase are always expenses as incurred.
• D)All of the choices are correct regarding research and development costs.

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Definitions:

Break-even

The point at which total costs and total revenue are equal, resulting in no profit or loss for the business.

Variable Cost

Outgoings that are directly influenced by how much is produced or sold, including the costs of labor and materials.

Monthly Dollar Sales

The total revenue generated from sales in a given month, expressed in U.S. dollars.

Variable Expenses

Expenses that fluctuate with changes in production volume or business activity.