If a Company Constructs a Laboratory Building to Be Used

question 11

Multiple Choice

If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as

• A) depreciation deducted as part of research and development costs.
• B) research and development expense in the period(s) of construction.
• C) depreciation or immediate write-off, depending on company policy.
• D) an expense at such time as productive research and development has been obtained from the facility.

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Definitions:

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

Internality

A personality trait that involves attributing success and failure to one's own efforts and abilities.

Externality

A term in economics that describes a cost or benefit that affects a party who did not choose to incur that cost or benefit.

Internality-Externality

A psychological dimension that distinguishes between individuals who attribute outcomes to their own control (internality) and those who attribute them to external forces (externality).