R&D spending decisions are complicated because
A)costs of R&D are immediate, while benefits occur at some future time and are uncertain.
B)benefits of R&D are clear, but costs are complicated and hard to estimate.
C)there are so many different sources of funds for R&D, and they each require different returns.
D)it is difficult to determine which R&D activities could be patented.

Question

Quizplus · Accepted Answer

R&D spending decisions are complex primarily because the costs are incurred upfront, while the benefits, which are uncertain, are realized in the future. This uncertainty makes it challenging to assess the value and potential return on R&D investments.

R&D Spending Decisions Are Complicated Because