R&D Expense Flashcards
1
Q
What items are included in R&D Expense
A
- New Knowledge
- new Technology
- Conceptual
- Search for product alternatives
- Modification of Design
- Pre production
- Not useful for commercial use
2
Q
What items are excluded from R&D Expense?
A
Commercial production Production Existing product Existing capability Periodic Design Patent application Improvement of a product or process
3
Q
If an asset is purchased that is exclusively for R&D, how should it be booked?
A
It should be expensed immediately
