Research & Development represents all direct and indirect costs associated with the creation and development of new processes, applications, and products. Research & Development shows how much money a company is spending on innovation.
Research & Development plays an important role by showing how much money a company is spending to innovate. It can also show how focused a company is on its future, revealing the amount of money spent on new processes, applications, and products.
It’s calculated by including the following expenses:
It excludes: