In 2006, Edwards Corporation Incurred Research and Development Costs as Follows

question 75

Multiple Choice

In 2006, Edwards Corporation incurred research and development costs as follows: $$\begin{array} { l r } \text { Materials and equipment } & \$ 80,000 \\\text { Personnel } & 120,000 \\\text { Indirect costs } & \underline { 150,000 } \\& \underline { \$ 350,000 }\end{array}$$ These costs relate to a product that will be marketed in 2007.It is estimated that these costs will be recouped by December 31, 2009.The equipment has no alternative future use.What is the amount of research and development costs that should be expensed in 2006?

• A)$0.
• B)$200,000.
• C)$270,000.
• D)$350,000.

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Definitions:

Variances Are Equal

An assumption in certain statistical tests that the variability in groups or conditions being compared is roughly the same.

Group Difference

The observed variance or deviation between two or more groups in a study, measured in terms of the dependent variable.