#119 Research & Development Flashcards
Included or Excluded from R and D
Laboratory Research
Included
Included or Excluded from R and D
Conceptual formulation & design of possible products or process alternatives
Included
Included or Excluded from R and D
Engineering follow-through
Excluded
Included or Excluded from R and D
Modification of the formulation or design of a product or process
Included
Included or Excluded from R and D
Quality control and routine testing
Excluded
Included or Excluded from R and D
Troubleshooting
Excluded
Included or Excluded from R and D
Design, construction, & testing of preproduction prototypes & models
Included
Included or Excluded from R and D
Adaptation of an existing capability to a particular customer’s needs
Excluded
Included or Excluded from R and D
Routine design of tools, jigs, molds, and dies
Excluded
Included or Excluded from R and D
Design of a pilot plant
Included
Included or Excluded from R and D
Legal work in connection with patent applications
Excluded
Included or Excluded from R and D
Design of tools, jigs, molds, and dies involving new technology
Included
Included or Excluded from R and D
Software development costs
Excluded
How would you account for a fixed asset used in a single R and D project (Asset has no alternative uses)
The entire cost of the asset is expensed immediately
How would you account for a fixed asset used in several R and D projects?
The asset is capitalized and annual depreciation is expensed to annual R and D costs
How would you account for a fixed asset used temporarily in a R and D project?
The depreciation during the period of the R and D project is expensed to annual R and D costs.
The costs of internally developing a patent are considered Research and Development and thus expensed.
True or False
True, only registration and legal costs are capitalized.
When purchasing a patent the entire cost is capitalized.
True or False
True
