R&D spending decisions are complicated because
A) costs of R&D are immediate, while benefits occur at some future time and are uncertain.
B) benefits of R&D are clear, but costs are complicated and hard to estimate.
C) there are so many different sources of funds for R&D, and they each require different returns.
D) it is difficult to determine which R&D activities could be patented.

Question

Quizplus · Accepted Answer

R&D spending decisions are complicated because the costs of R&D are immediate, while benefits occur at some future time and are uncertain. This makes it difficult for companies to predict the return on investment and evaluate the impact of the R&D spending on the company's future growth and profitability.

R&D Spending Decisions Are Complicated Because