 | Research and Development |
Research and development (R&D) expenses stem from a company’s activities that are directed at developing new products or procedures.
Research-intensive industries such as healthcare and technology often identify R&D expenses separately because they constitute such a large component of total expenses. For example, Microsoft, EMC, and Pfizer all identify R&D expenses separately. Other companies aggregate the R&D expense within Other Operating Expenses or SG&A line items.
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