Research and development (R&costs:
A. Are always expensed in the period incurred.
B. May be expensed or capitalized, at the option of the reporting entity.
C. Must be capitalized and amortized.
D. Generally pertain to activities that occur prior to the start of production.
Answer:D
Research and development (R&costs:
A. Are always expensed in the period incurred. B. May be expensed or capitalized, at the option of the reporting entity. C. Must be capitalized and amortized. D. Generally pertain to activities that occur prior to the start of production.