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Research and Development costs: asset or expense

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1. In the United States, companies must charge expenditures for research and development directly to expense. In some other countries companies can recognize such cost as assets. Suppose you were a manager of a research and development department. Which method of accounting for research and development would be most consistent with the informaition you use for decision making? Explain.

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Solution Summary

The solution examines research and development costs in the United States. Assets and expenses for decision making are analyzed.

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Almost all research and development projects are conducted by given a predetermined amount of funds. As a ...

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