What are the benefits of capitalizing R & D cost?


I really need some help here.
Thank you.

Capitalizing is recognizing an expense across the useful life of a product. Let's assume you are developing a new drug. Instead of incurring the cost of R&D in one year, you would incur the cost of R&D across the useful life of the patent of the drug. Basically it allows you to break up the cost of a product up across several years instead of one year.