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Commerce · Q285

Accounting

Graduate and Post Graduate · Commerce · question 285

Q285

Which of the following is not considered as Research & Development costs?

A.
Testing in search for product alternatives
B.
Legal work on patent application
Answer
C.
Modification of design of a process
D.
Searching for application of new research findings

Answer: Option B

Solution

Answer: Option B
Solution:
Legal work on patent application is not considered as Research & Development costs. Research and development (R&D) expenses are associated with the research and development of a company's goods or services.