Accounting Dictionary - Letter R

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Research and development costs
are costs incurred to discover new knowledge in order to create a new product or service. Examples of research and development activities include laboratory research to discover new knowledge; non-routine modifications of a product (i.e., routine ongoing efforts to improve an existing product are not considered research and development activities); design, construction, and testing of prototypes; and search for application of new findings. Example of activities not considered research and development activities include troubleshooting during production; quality control during production; and periodic design changes to existing products.
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