Date of Award

6-1-1968

Document Type

Thesis

Degree Name

Master of Science (MS)

Department

Accountancy

Abstract

Recognizing the differences in opinion regarding the presentation of research and development costs, this thesis examines theses costs, evaluates present practice and discusses problems related to the costs.

After a brief discussion of the nature and development of these costs, there follows a discussion of planning related to the determination of the amount of funds to be spent and the type of research to be conducted. The research budget is used to show how funds are approved to be spent.

Control of research and development expenditures ls examined through a comparison of the practices of small and large firms. Attitudes of employees toward these costs are evaluated in terms of the effect on the control of the costs.

Financial reporting methods presented in the study include the direct charge-off and the deferral method of accounting portrayal. The problems of obtaining accurate financial information on research and development costs are studied in relation to the background of technical personnel.

It was concluded from the study that any expenditures made for research and development that will benefit future periods should be amortized over those periods. At the same time, if the future benefits are impractical to establish, a current charge-off of related expenditures would be the best procedure.

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