USGAAP Requires That Virtually All Costs Incurred for Research and Development

question 116

Multiple Choice

U.S.GAAP requires that virtually all costs incurred for research and development of an internally generated patent be

• A)capitalized.
• B)expensed.
• C)amortized over 40 years.
• D)ignoreD.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor expenses.

Time Ticket

A document that indicates the employee, the hours worked, the account and job to be charged, and the total labor cost.

Personal Exemptions

Deductions allowed on individual income tax returns, reducing the amount of income subject to taxation, based on the taxpayer and dependents.

Job Number

An unique identifier assigned to a specific job or project for tracking costs, progress, and billing.