Research & Development

Question 1

What costs are not considered to be research and development costs?

Answer 1

Administrative costs

Question 2

What 5 categories can research and development costs be classified into?

Answer 2

1. Materials, equipment, and facilities used in R&D activities
2. Personnel engaged in R&D activities
3. Intangibles purchased or developed for use in R&D activities
4. Contract services acquired and used in conjunction with R&D activities
5. Indirect costs reasonably allocable to R&D activities

Question 3

What costs are excluded from and do not meet the definition of research and development costs?

Answer 3

Development of software for internal use and market research

Question 4

What is the definition of research and development costs?

Answer 4

Planned research for new knowledge

The transition of research findings into a design for a new product or process