Final answer:
The accounting treatment for R&D in materials, equipment, and facilities depends on whether these costs are classified as capital expenditures or operating expenses.
Step-by-step explanation:
The accounting treatment for research and development (R&D) in materials, equipment, and facilities depends on whether these costs are classified as capital expenditures or operating expenses.
When R&D costs are related to materials, equipment, or facilities that have a useful life spanning multiple periods, they are typically capitalized as assets and expensed over the estimated useful life through depreciation or amortization.
On the other hand, if the R&D costs are primarily associated with research activities and do not result in an identifiable future benefit, they are usually expensed as operating costs in the period incurred.