Why Is There Little Financial Incentive for Research and Development

question 6

Multiple Choice

Why is there little financial incentive for research and development of new antimicrobial agents?

• A) medications discovered will all be expensive to produce
• B) medication is taken for short period of time - not a long term treatment for patient
• C) decrease in survival rates for immunosuppressed patients
• D) all the antibacterial agents have already been discovered

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Definitions:

Units Produced

The aggregate count of finished products produced over a designated time frame.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including raw materials and direct labor costs.

Units Produced

The total number of complete items manufactured during a specific period.

Period Costs

Period costs are expenses that are not directly tied to the production process and are expensed in the period they occur, such as selling, general, and administrative expenses.