XYZ Company made expenditures for the following: Costs in activities aimed at obtaining new knowledge P 10,000 Cost of developing and producing a prototype model 3,000 Cost of testing the prototype model for safety and environmental friendliness 30,000 Cost of revising designs for flaws in the prototype model 10,000 Salaries of employees, consultants and technicians involved in R and D 20,000 Marketing research to study consumer tastes 5,000 Advertising to establish recognition of the newly developed product 30,000 Cost of conference for the introduction of the newly developed product including fee of a model hired as endorser How much is recognized as research and development expense? _____
XYZ Company made expenditures for the following: Costs in activities aimed at obtaining new knowledge P 10,000 Cost of developing and producing a prototype model 3,000 Cost of testing the prototype model for safety and environmental friendliness 30,000 Cost of revising designs for flaws in the prototype model 10,000 Salaries of employees, consultants and technicians involved in R and D 20,000 Marketing research to study consumer tastes 5,000 Advertising to establish recognition of the newly developed product 30,000 Cost of conference for the introduction of the newly developed product including fee of a model hired as endorser How much is recognized as research and development expense? _____
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 21E: At the end of 20x5, Bing Pharmaceuticals began to implement an environmental quality management...
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XYZ Company made expenditures for the following:
- Costs in activities aimed at obtaining new knowledge P 10,000
- Cost of developing and producing a prototype model 3,000
- Cost of testing the prototype model for safety and environmental friendliness 30,000
- Cost of revising designs for flaws in the prototype model 10,000
- Salaries of employees, consultants and technicians involved in R and D 20,000
Marketing research to study consumer tastes 5,000- Advertising to establish recognition of the newly developed product 30,000
- Cost of conference for the introduction of the newly developed product including fee of a model hired as endorser
How much is recognized as research and development expense? _____________
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