How are research and development costs costs accounted for, Accounting Basics

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How are research and development costs costs accounted for

Response to the following questions:

1. Escalating environmental liabilities are a major concern of companies today. How does a company know when to record such liabilities?

2. Currently Microsoft spends a tremendous amount of money on research and development costs to continuously develop new products. How are such R&D costs accounted for?

If possible, please give examples to better understand your answers.

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Accounting Basics: How are research and development costs costs accounted for

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Accounting Basics: How are research and development costs costs accounted for

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