Which of the following costs should be excluded from research and development expense?
A) Modification of the design of a product
B) Acquisition of R & D equipment for use on a current project only
C) Cost of marketing research for a new product
D) Engineering activity required to advance the design of a product to the manufacturing stage

Question

Quizplus · Accepted Answer

Cost of marketing research for a new product should be excluded from research and development expense because it is considered a selling expense, not an R&D expense. R&D expenses typically include costs directly associated with the research and development of new products or services, not the costs to market them.

Which of the Following Costs Should Be Excluded from Research