The Process of Research and Development

question 7

Multiple Choice

The process of research and development

• A)always leads to useful products.
• B)almost never leads to useful products.
• C)often involves a waste of resources.
• D)is usually conducted in governmental laboratories.

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Sunk Cost

A cost that has already been incurred and cannot be recovered or changed.

Period Cost

Expenses on the income statement that are not directly tied to the production of goods, including sales, administration, and other overhead costs.