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Materials, labor and overhead.

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13y ago

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Which of the following statements is not true with regard to international accounting standards for research and development costs?

Some countries require research costs to be expensed and development costs to be capitalized


How you can deal with organization costs in the financial statements?

Organization costs are capitalized under Other Assets (non-current) and amortized (written off to an expense account) over a period of time, usually 60 months.


What are expenditures that add to the utility of fixed assets for more than one accounting period?

Expenditures that add to the utility of fixed assets for more than one accounting period are typically capital expenditures (CapEx). These include costs for acquiring, upgrading, or improving fixed assets, such as machinery, buildings, or vehicles, which enhance their value or extend their useful life. Examples include major renovations, equipment purchases, and installation costs. Unlike operating expenses, these costs are capitalized and depreciated over their useful life on the balance sheet.


What are costs that are treated as assets until the product is sold?

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Can you capitalize costs of an At the Market Offering?

It shouldn't be capitalized.


Costs that are treated as assets until the product is sold are called?

Costs that are treated as assets until the product is sold are called product costs. The costs are added to the inventory, and the expense is recognized when the inventory is purchased.


Can trademark registration costs be capitalized?

Canadian Trademark registration costs can be capitalized. • Trademarks and trade names are renewable indefinitely every 15 years, so the legal life may be unlimited; the useful life, however, may be limited • Costs of acquired trademarks or trade names are capitalized • If trademarks or trade names are developed by the business, all direct costs are capitalized • If the future benefits of a trademark is determined to have an indefinite life, it is not amortized.


Can you depreciate labor?

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Why is it better to refer to the costs rather than values of assets such as plant or inventories?

The values of assets such as plants or inventories can change elastically. Using costs instead of values for elastic assetsÊis more accurate for calculating expenses.


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Why do income statements for internal purposes differ to published income statements?

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