Expenditures for Research and Development Intended to Lead to New

question 141

Multiple Choice

Expenditures for research and development intended to lead to new products of commercial value:

• A)Should be recorded as intangible assets and amortized during the years in which benefits are expected.
• B)Should be charged to expense when incurred.
• C)Should be capitalized only if patents are expected to be granted.
• D)Should be classified as deferred charges.

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Definitions:

Obedience

The act of following orders or instructions, usually from an authority figure, without questioning.

Foot-In-The-Door Technique

A strategy designed to gain a favorable response to a small request at first, with the intent of making the person more likely to agree later to a larger request.

Compliance Strategy

Techniques designed to persuade or influence others to agree with one's requests, rules, or desires.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge.