A Study on How to Treat R&D as Cost in China ——A Case Based on a Listed Company in an Activity-Based-Costing
PAN Fei, TONG Wei-hua, YANG Hui-hui (School of Accountancy, Shanghai University of Finance and Economics,Shanghai 200433, China)
In the system of the conventional costing, the expenditure of research and development is always treated as the expense. However, this method goes against manager decision-making while the amount of RD becomes larger and larger. Taking XuJi Electric Corporate as an example, this paper, from the perspective of management accounting, deals with RD as product cost by employing activity-based-costing in order to provide relevant information for internal decision making in a company.