Flashcards in R&D Costs Deck (13)
All R&D costs are expensed. TF
Intangible assets purchased from others and tangible assets that have alternative future uses are ______ and ______ or _______ and R&D expense.
capitalized and depreciated or amortized
The attempt to discover NEW knowledge aimed at the development of new products, services, processes, or techniques, or the significant improvement in an existing product is the definition of....
_______ is the translation of research findings or knowledge into a plan or DESIGN of a NEW product or significant improvement in an existing product or process whether intended for sale or use. Also includes, formulation, design and testing of product alternatives, construction of prototypes, and operation of pilot plants.
Design and construction of plant and equipment, lab research, and conceptual formulation are all R&D. TF
Software development costs, legal work for patents, quality control and testing DURING PRODUCTION, troubleshooting, and engineering follow during production, through are all included in R&D. TF
Modification to the formula of a product (would/would not) qualify as R&D. TF
If materials, equipment, and facilities are acquired for a specific RD and have no alternative use, proper treatment is to charge the expense to which account?
If materials, equipment, and facilities are acquired for a specific R&D and have other alternative uses, costs should be capitalized. TF
Salaries, wages, and related costs of people working on R&D are expensed to R&D. TF
Under US GAAP R&D costs are all _____. Under IFRS research costs are _______ and development costs are ______.
Expensed, expensed, capitalized
Legal fees and registration fees are capitalized to the patent account. TF