Life Cycle Perspective of R&D Investment Management: Case Study Approach

Marie Kubáňková and Jaroslava Hyršlová

European Financial and Accounting Journal, 2014, vol. 2014, issue 3, 4-24

Abstract: The management of R&D activities has become popular among researchers. The need for changes in R&D organization and financial support brings new decision-making issues for the R&D manager. Life cycle concepts help to manage R&D in the whole perspective. The aim of this paper was to examine the life cycle costing for R&D investment appraisal. A case study was realised in a private SME company for the R&D project of the bumblebee laboratory production. The analysis showed the possibility of using life cycle product perspective to control R&D investment. The expenditure was compared to the net income generated during the whole life cycle of the product. This complex evaluation allows to meet the requirements of the R&D management and to support the decision-making process. Using the life cycle perspective the company will gain a tool that will give an evaluation of the R&D's effectiveness and provides an opportunity to manage R&D projects and compare them with others investments.

Keywords: Life Cycle Costing; R& D investment; Strategic Management Accounting (search for similar items in EconPapers)
JEL-codes: M21 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.18267/j.efaj.122

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