Question

1. What’s the rationale for producing a R&D budget? 2. How often should a R&D budget...

1. What’s the rationale for producing a R&D budget?

2. How often should a R&D budget be evaluated?

Homework Answers

Answer #1

1.

Such budget indicates that the company has plan to spend on research and development act for improvements; it may be marketing research, product research, operating research, etc.

Rationale: It indicates justification. Research and development work is never ending process --- any sort of development could be developed further. But a company or firm has to stay within its budget. Such budget helps to understand how much research work could be done by staying within the budget; in absence of which the research work would be aimless.

2.

Such evaluation should be done at least once in each year. The techniques of research and development are ever changing – earlier market survey was done through face-to-face meeting but now it is done through video calling. Such increasing technology increases the cost as well; therefore, budget should be evaluated frequently for regular updating.

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