11.7. Control over R&D
R&D is project-oriented, and costs are accumulated by project. Due to the long duration of a project, adequate project control must exist to accumulate all costs from start-up to the finished product. Further, R&D projects cannot be measured by quantity, volume-driven factors, or money that has been or has not been spent. For example, 75 percent of the money may have already been spent on the project, but that does not mean the project is 75 percent complete.
R&D expenditures should be in conformity with budget limitations. There should be project controls. Control reports are required by commitment and expenditure. In the control phase, there should be a comparison between the technical and financial aspects of projects. Projects should be continually appraised to determine which ones should be expanded, dropped, modified, or deferred.
A significant degree of cost control should be placed over high-risk R&D projects.
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