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Sagot :
Research and development costs - generally pertain to activities that occur prior to the start of production.
The correct option is A.
Modern businesses spend a lot of money on their research and development departments because these efforts can lead to the creation of new, valuable intangible assets. The way that these expenses are recorded is required by the accounting rules.
Development costs are incurred to translate research results into new goods or processes that may be either sold or utilised internally. Research costs are expenses incurred to seek out new information. The R&D process ends once a product is created and prepared for manufacturing, thus production expenditures are not included.
According to US GAAP, all R&D expenses must be recorded in the period in which they are incurred; they are never included in the cost of intangible assets or inventory items.
The complete question is:
Research and development costs
multiple choice
A. generally pertain to activities that occur prior to the start of production.
B. may be expensed or capitalized, at the option of the reporting entity.
C. must be capitalized and amortized.
D. none of these responses are correct.
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