A Major Limitation in the Use of Internal R&D Departments

question 87

Multiple Choice

A major limitation in the use of internal R&D departments for new idea generation is

• A) few scientists have ideas.
• B) they tend to be dissolved once sufficient ideas have been generated.
• C) they tend to create too many blockbusters.
• D) few scientists have practical ideas.
• E) the costs tend to be quite high.

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Definitions:

Support Departments

Units within an organization that provide essential services and support to the main production or operational departments but do not directly contribute to the primary business product or service.

Machining Department

A specific department within a manufacturing facility where machining processes such as cutting, drilling, or milling are performed on materials.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, enhancing the accuracy of product costing.

Overhead Pools

Aggregations of indirect costs or overheads that are then allocated to products or services based on predetermined criteria.