Research and Devlopment Cost

by Karen
(Cypress, TX)

Is research and development cost considered an asset or an expense?



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Karen,


It depends on the individual circumstances ... it can be either one.

I haven't dealt with R&D in years but it is my understanding that normally they would be expensed in the period incurred, along with any associated overhead costs.

However, I think if they have a future use component related to another alternative, they get capitalized.

It would be best to check with a CPA on this one.

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