ACC 304 All Assignments ACC 304 All Assignments | Page 222
c. May be either capitalized or expensed when incurred, depending
upon the materiality of the amounts involved.
d. Must be expensed in the period incurred unless it can be clearly
demonstrated that the expenditure will have alternative future uses or
unless contractually reimbursable.
55. Which of the following would be considered research and
development?
a. Routine efforts to refine an existing product.
b. Periodic alterations to existing production lines.
c. Marketing research to promote a new product.
d. Construction of prototypes.