A Company's Capability in Product R&D Can Be Measured by Consistent

question 52

True/False

A company's capability in product R&D can be measured by consistent reductions in unit manufacturing costs and by the number of product defects.

---

Definitions:

Revenue Expenditures

Expenses incurred during the normal operation of a business that are expected to be consumed within the same accounting period.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for.

Owner's Equity

Owner's equity represents the owner's claim to the assets of a business, calculated as the business's total assets minus its total liabilities.