In a factory, research and development expenditure is budgeted to ₹9,00,000. This is the normal expenditure on research activities. Due to some reasons, research is unsuccessful. The research and development expenditure

CS Executive · Cost and Management Accounting · PYQS · December 2016
In a factory, research and development expenditure is budgeted to ₹9,00,000. This is the normal expenditure on research activities. Due to some reasons, research is unsuccessful. The research and development expenditure will be —
(A) Treated as deferred expenditure
(B) Written-off to costing profit and loss account
(C) Treated as direct product cost
(D) Treated as factory overheads.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost Accounting

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