Research and Development Costs for Projects Other Than Software Development

question 84

Multiple Choice

Research and development costs for projects other than software development should be:

• A) Expensed in the period incurred.
• B) Expensed in the period they are determined to be unsuccessful.
• C) Deferred pending determination of success.
• D) Expensed if unsuccessful, capitalized if successful.

Recognize the presentation and disclosure requirements for current liabilities under IFRS and GAAP.

Understand provisions and warranties, and how they impact financial statements.

Understand how to compute various financial metrics and their significance, such as working capital and current ratio.

Ability to execute payroll computations, including gross earnings, tax withholdings, and net pay.

---

Definitions:

Inventory

The cumulative quantity of products and materials in a company's possession intended for either production or sale.

Product Costs

Costs directly related to the manufacturing of a product, including raw materials, labor, and overhead expenses.

Materials and Labor

Materials and labor represent the primary costs involved in the production of goods, including raw materials used and wages paid to workers.

Period Costs

Expenses directly tied to non-manufacturing activities such as selling, administration, and general business operations, recognized in the income statement when incurred.