Which of the Following Research and Development Costs Should Always

question 63

Multiple Choice

Which of the following research and development costs should always be capitalized?

• A)costs of intangibles purchased from others
• B)costs of materials, equipment, and intangibles with alternative future uses purchased from others
• C)costs of equipment with an expected life greater than three years
• D)costs of contract services purchased from others

Recognize the opportunity cost of capital as a key concept in investment decisions for maintaining a firm's capital assets.

Interpret the significance of economic profit and how it differs from accounting profit in business analysis.

Identify what constitutes implicit costs and their relevance in calculating economic profit.

Analyze the impact of opportunity costs on the firm's equity capital from an economist's perspective.

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Definitions:

Cubicles

Partially enclosed office workspaces, separated from neighboring workspaces by partitions, designed to give employees a measure of privacy.

Decreased Absenteeism

A reduction in the frequency and duration of employees being absent from work, indicating increased engagement and job satisfaction.

Increased Turnover

A situation where there is a higher than usual rate of employees leaving a company, which can indicate dissatisfaction or organizational issues.

Productivity

The efficiency at which goods or services are produced, often measured by the output per unit of input.