Development expenditure

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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.

    Profile photo of MikeLittle

    Making, developing, refining, adapting, prototyping, testing, amending, …………

    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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