Costs for which of the following activities would not be included as part of research and development R&D) costs?
A) testing in search for or evaluation of product or process alternatives.
B) adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity.
C) searching for applications of new research findings or of other knowledge.
D) design, construction, and testing or preproduction prototypes and models.

Question

Quizplus · Accepted Answer

Adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity is considered more of an operational or production activity rather than a research and development (R&D) activity. R&D costs typically involve the creation of new knowledge, products, or processes, not the modification or adaptation of existing ones for specific customer needs.

Costs for Which of the Following Activities Would Not Be