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New Member
posted Mar 14, 2025 8:29:18 PM

Are research and development costs considered costs of goods sold?

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1 Replies
Expert Alumni
Mar 15, 2025 9:08:11 AM

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