A health and beauty company is developing a new line of hand lotions for very dry skin. they expect the research and development stage to take 10 years and cost approximately $12.8 million. once they have the product line developed, they will apply for patents, which will cost approximately $200,000 in application and legal fees. as their financial advisor, how would you tell them to record these costs?

Question

Sierra Ward

Business

25 August, 04:49

A health and beauty company is developing a new line of hand lotions for very dry skin. they expect the research and development stage to take 10 years and cost approximately $12.8 million. once they have the product line developed, they will apply for patents, which will cost approximately $200,000 in application and legal fees. as their financial advisor, how would you tell them to record these costs?

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Luci · Answer 1

To completely document and describe every cost down to the very penny! I would record the costs of research and development every quarter to insure that everything is being done correctly and thus insure that no money is wasted and can be used to its fullest extent and potential.