The total research and development costs of P200,000 incurred to develop the new product is a/an choicespostponable costrelevant costsunk costavoidable cost NUBD's Research and Development Department was able to develop a new product - a cellphonepowered by solar energy. After reviewing the data prepared by the company's controller, NUBD'smanagement is confident that the new product will contribute profit to the company.The data prepared by the controller are as follows:Suggested selling priceCosts:MaterialsP 200P 60Parts fabricatio n (P10 per hour)Assembly (P6 per hour)Variable overhead (P4 per hour)Fixed overhead (P3 per hour)Total cost40182821167The total research and develo pment costs incurred to develop the new product amounted toP200,000. The company's fixed overhead includes rent, equipment depreciation and salaries offatory supervisors.

Sunk cost refers to the cost that has already been incurred and should have no effect on the future…

Answered: The total research and development…

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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Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Total Facility locatión Kentucky Arizona Illinois New product $ 62,587,200 $ 100,360,000 $ 77,772,800 $ 240,720,000 revenue Research & $ 60,360,000 Development Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be: Multiple Choice $24,072,000. $15,693,600. $244,504,000. $9,018,000. $18,036,000.
Subject: accounting
Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million.
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The total research and development costs of P200,000 incurred to develop the new product is a/an choices postponable cost relevant cost sunk cost avoidable cost