Development expenditure

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    gyanmichael
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    Hi mike, i understand the standard on research and development. About development expenditure, is it the money spent on making a single prototype and then amortising on completion or it is about manufacturing say 1000 new model of BMW. Thanks for your help.


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    MikeLittle
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    Making, developing, refining, adapting, prototyping, testing, amending, …………..ing

    You’d probably make more than one in this stage so you could experiment and discard if the experiment failed.

    1,000 BMW? Yes, why not, although the number seems a little excessive. I know very little about the car industry (nor cars generally) so maybe 1,000 would be a normal quantity to manufacture whilst the new model in in development stage

    Does that answer it for you?

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