Reference no: EM132785509

Problem 1: An entity has recently completed a research and development project. Which of the following statements is accurate?

A. Designing of jigs and tools qualify as research activities.

B. Costs incurred during the development phase can be capitalized if criteria such as technical feasibility of the project are met.

C. Training costs of technicians used in research can be capitalized.

D. Costs incurred during the research phase can be capitalized.

Problem 2: Which of the following items is a component of the cost of an internally generated intangible asset?

A. Fees to register a legal right.

B. Selling, administrative and other general overhead expenditures that cannot be directly attributed to preparing the asset for use.

C. Expenditures on training staff to operate the asset.

D. Identified inefficiencies and initial operating losses.