From a cost management view,research and development cost represents
A)a life-cycle investment
B)a period expense.
C)an unearned revenue.
D)a risk reserve.

Question

Quizplus · Accepted Answer

Research and development cost represents a life-cycle investment, as it is an investment in the development of a new product or service that is expected to generate revenues over its entire life cycle. It is not a period expense, as it is not incurred in the normal course of business operations. It is also not an unearned revenue or risk reserve.

From a Cost Management View,research and Development Cost Represents