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Yes,R&D is technically paid off as soon as it completes, but paying off the R&D is an investment and the company obviously wants a return on this investment.
by semi-extrinsic 11y ago
Yes,R&D is technically paid off as soon as it completes, but paying off the R&D is an investment and the company obviously wants a return on this investment.
- thaumasiotes 11y agoBut the price of a calculator is totally unrelated to the cost of the R&D associated with the calculator. The original point was nonsense. The company wants its return to be as large as possible. Speaking in more sensible terms, they want to get as much money as they can regardless of whether they've reached a magic internal accounting threshold or not. R&D just has no relevance at all to product pricing.