Development cost

Hi Tutor,

It is known from FR that development cost will not be capitalized.

Here for the life cycle costing if we are told to calculate the full cost of the product for the whole life of the product then we should include all the costs throughout the life of the product
including the development costs, am I right?

In the following question the requirement was for a budgeted results
so here do we have to apply the principle of the sunk cost and should not include the development cost of the budgeted result ?

281 WARGRIN (DECEMBER 2008) Kaplan Exam kit 2023-2024

So I want to differentiate between the two approaches :

-We have to include the developments cost when calculating the full life cost of the product

– We don’t have to include the development cost when talking about the profit and i.e accounting measures.

Is it okay like that?

Thanks,