Are research and development costs expensed?
Research and development costs are expensed because the funds are used to create intangible assets, and costs incurred internally to create intangibles are generally expensed. The reason for this is because the costs incurred internally to create intangibles bears no relationship to their real value.

Is this consistent with how similar costs are handled?
This is fairly consistent with how similar costs are handled, except for costs that are capitalized, such as property, plant, and equipment. This is because most costs are either amortized or expensed, including tools and equipment, commissions, wages, office supplies, rent, etc. Whereas property, plant, and equipment are considered to be fixed assets that could be converted back into cash meaning they are capitalized on the company’s financial statements and have a marketable value associated with them.

Should research and development costs be expensed?
Research and development (R&D) costs should be expensed, because often intangible assets have fees and costs associated with their creation. These fees and costs are associated with each type of intangible asset: marketing-related intangibles, customer-related intangibles, artistic-related intangibles, contract-related intangibles, and goodwill. For example, developing a company trademark (marketing-related intangible asset) can have registration fees, attorney fees, design costs, and consulting fees all associated with the intangible’s creation.