Final answer:
Research and development costs are recorded as an intangible asset if they are expected to provide future economic benefits, which is true. Such investments can lead to positive externalities, providing benefits to society at large beyond the investing firm's private profits.
Step-by-step explanation:
The statement that research and development costs are recorded as intangible assets if they will provide economic benefits in future years is True. When a company invests in research and development, it aims to create new technology or improve existing technology, which can provide economic benefits not only to the firm itself but also to other firms and society as a whole. This broader impact is known as positive externalities. Positive externalities occur when a firm's investment benefits third parties, and can include things like technological advancements that other companies can use, improvements in industry standards, and contributions to societal well-being. However, purely from an investment perspective, a private firm might underinvest in research and technology because the private gains, in terms of profits, represent only a part of the overall social benefits, suggesting a need for public investment to encourage adequate levels of research. LINK IT UP with considerations of both the direct financial impacts and the broader socioeconomic contributions of such investments.