newly develop product 60,000 e. Cost incurred for search of alternatives 35,000 f. Cost of final selection of possible alternative
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The following costs are incurred by Everlasting Corporation in 2022:
a. Cost of activities aiming new knowledge |
P150,000 |
b. Cost of developing and producing prototype model |
30,000 |
c. Cost of seminars to introduce the newly develop product |
120,000 |
d. Advertisement cost to introduce the newly develop product |
60,000 |
e. Cost incurred for search of alternatives |
35,000 |
f. Cost of final selection of possible alternatives |
50,000 |
g. Cost of machine acquired to be used only in an R&D project |
300,000 |
h. Cost of engineering follow through in an early phase of commercial production |
50,000 |
i. Adaptation of an existing capability to particular customers need |
36,000 |
j. Salaries of employees involved in R&D |
480,000 |
k. Radical modification to the formulation of a chemical product |
40,000 |
l. Laboratory research aimed at discovery of new technology |
58,000 |
m. Cost of testing the prototype and safety features |
100,000 |
n. Cost of revision of the design of the prototype model |
250,000 |
How much of the above items is reported as research and development cost in 2022?
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