R&D expenses should be treated as capital expenditures and amortized over multiple periods rather than fully expensed in the period incurred because: 1) R&D often creates long-term benefits similar to other capital investments; 2) Capitalizing and amortizing R&D achieves better matching of costs and benefits than expensing; 3) Treating R&D as a capital asset increases a firm's capital and lowers risk, as the costs are spread over time rather than impacting a single period.