A Computer Company Has $2800000 in Research and Development Costs

question 8

Multiple Choice

A computer company has $2800000 in research and development costs. Before accounting for these costs the net income of the company is $2000000. What is the amount of net income or loss after these R & D costs are accounted for?

• A) $800000 loss
• B) $2000000 net income
• C) $0
• D) Cannot be determined from the information provided.

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Definitions:

Nondirectional Correlation

A type of correlation that indicates a statistical relationship between two variables without specifying whether the relationship is positive or negative.

Negative Correlation

A connection between two variables where as one variable rises, the other falls.

Direct Correlation

A relationship between two variables where they move in the same direction.

Nondirectional Correlation

A type of correlation where the direction (positive or negative) of the relationship between variables is not specified.