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Dear John sir,
Is The cost of research and development department a production overhead?if so is it included in the cost of a cost unit?It depends on the question.
In normal Paper F2 standard costing it will not be included in the costings.
In life-cycle costing it will be included, but you cannot be asked calculation questions on life-cycle costing in Paper F2 (you can only be expected to know the idea behind it (which is explained in our free lecture notes). Calculations are only asked in Paper F5.
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