A manufacturer incurs the following costs: $38,000 developing new techniques that will be put in placeshortly to cut production costs; $27,000 researching a new process to improve the quality of thestandard product and $8,000 on market research into the commercial viability of a new type of product.It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets.9.7How much should be charged as research and development expenditure in profit or loss? (ignoreamortisation)$73,000$35,000$27,000$38,000A229ni2ud a ydeCBPPEARNING MEDIA

Answer: Option B is Correct i.e. $35,000.

A manufacturer incurs the following costs: $38,000 developing new techniques that will be pu shortly to cut production costs; $27,000 researching a new process to improve the quality of th standard product and $8,000 on market research into the commercial viability of a new type of It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets. 9.7 How much should be charged as research and development expenditure in profit or loss? (ignor amortisation) $73,000 $35,000 $27,000 $38,000 20eni2ud a C BPP AEDIA

A manufacturer incurs the following costs: $38,000 developing new techniques that will be pu shortly to cut production costs; $27,000 researching a new process to improve the quality of th standard product and $8,000 on market research into the commercial viability of a new type of It is company policy to capitalise costs whenever permitted by IAS 38 Intangible Assets. 9.7 How much should be charged as research and development expenditure in profit or loss? (ignor amortisation) $73,000 $35,000 $27,000 $38,000 20eni2ud a C BPP AEDIA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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