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tlee133
March 15, 2025
Question

Are research and development costs considered costs of goods sold?

  • March 15, 2025
  • 1 reply
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    Vanessa A
    March 15, 2025

    No Research and Development are not part of costs of goods sold.  Costs of goods sold include inventory and labor and other costs DIRECTLY related to the product. 

    Research and Development would be considered an asset that is capitalized. 

    Guidance on Amortization of Specified Research or Experimental Expenditures under
    Section 174

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