Research and Development Costs Are

question 77

Multiple Choice

Research and development costs are

• A)treated as an expense when incurred.
• B)capitalized but not amortized.
• C)capitalized and amortized over the periods that will probably benefit from the research and development.
• D)included with the cost of the patent resulting from the research and development.

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Definitions:

Operating At Capacity

A situation where a business is utilizing all available resources to produce goods or services at maximum output.

Usual Selling Price

The regular or typical price at which goods or services are sold in the market under normal conditions.

Outside Supplier

A third-party entity that provides goods or services to a business, typically not affiliated with the purchasing company.

Variable Costs

Costs that vary in total directly and proportionately with changes in the level of production or activity volume.