Question

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

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

Answer 1

Answer:

A) Expensed if unsuccessful, capitalized if successful.

Explanation:

If a poject of research is unsuccessful, all the money that was invested is like a cost for the company, but if the project is succesful, the companie will earn money using it as advantage. A project succesful is like a bond that give income in the future and all the money in the futers. A good exmple of the projects of research and developmente are the patents.