Question

cost associated with the development of new products are spread out over the development period and book to research and development expenses. the example is

accural, none of the above, deferred cost, capitalization or written-off

Answer 1

Answer:

Correct answer is:

written-off

Explanation:

Cost associated with the development of new products are spread out over the development period and book to research and development expenses. Research and development expense are charged to Income Statement and hence written off.

Hence option "written off" is correct and other options are incorrect. It is neither deferred cost nor capitalization. Expenses are if required can be accrued but in the context most appropriate answer is "written off".