Research & Development

Question 1

What costs are INCLUDED in R&D

Answer 1

-Laboratory Research
-Conceptual formulation & design of possible products or process alternatives
-Modification of the formulation or design of a product or
process
-Design, construction, & testing of preproduction
prototypes and models
-Design of tools, jigs, molds, and dies involving new tech
-Design of a pilot plant

Question 2

What costs are EXCLUDED from R&D

Answer 2

-Engineering follow-through
-Quality control & routine testing
-Trouble-shooting
-Adaptation of an existing capability to a particular
customer’s needs
-Routine design of tools, jigs, molds and dies
-Legal work in connection w/ patent applications
-Software development costs