10. In Japan, research and development (R&D) costs can be capitalized. What does this mean?

    1. A) The costs for R&D are expensed in the period they are incurred.

    2. B) R&D costs are recorded as assets.

    3. C) R&D costs are treated as part of the cost of inventory.

    4. D) The costs of R&D are only recorded when they are paid for in cash.