How Are Research and Development Costs Treated for Financial Reporting $\begin{array}{llcc}\underline{\text { Financial Reporting}}&\quad\quad \underline{\text { EVA} }\end{array}$

Multiple Choice

How are research and development costs treated for financial reporting and for economic value added (EVA) calculations? $\begin{array}{llcc}\underline{\text { Financial Reporting}}&\quad\quad \underline{\text { EVA} }\end{array}$

a. $\begin{array}{llcc} \text { Capitalised } & \quad\quad\quad \text { Capitalised} \\\end{array}$

b. $\begin{array}{ll}\text { Expensed } & \quad\quad\quad\quad\text { Expensed } \end{array}$

c. $\begin{array}{ll}\text { Capitalised } & \quad\quad\quad\text { Expensed }\end{array}$

d. $\begin{array}{ll}\text { Expensed } & \quad\quad\quad\text { Capitalised }\end{array}$

A) Expensed/Expensed
B) Capitalised/Expensed
C) Capitalised/Capitalised
D) Expensed/Capitalised