Expense Category
Marketing
What expense category does r&d come under?
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There is no definitive answer to this question, as it depends on the specific organization and how they classify their expenses. However, some common expense categories that R&D may fall under include:

Operating Expenses

Operating expenses are those that are necessary for the company to run on a day-to-day basis. This can include things like rent, utilities, salaries, and general overhead costs. R&D may be classified as an operating expense if it is considered necessary for the company to maintain its current level of operation. For example, if a company is developing a new product, the research and development costs associated with that product may be classified as an operating expense.

Capital Expenses

Capital expenses are those that are necessary for the company to grow or expand its operations. This can include things like new equipment, property, or vehicles. R&D may be classified as a capital expense if it is considered necessary for the company to grow or expand its operations. For example, if a company is developing a new product, the research and development costs associated with that product may be classified as a capital expense.

Other

There are a variety of other expense categories that R&D could fall under, depending on the specific organization. Some other possible categories include marketing, advertising, or general and administrative expenses. Ultimately, it is up to the organization to decide which expense category is most appropriate for their R&D costs.

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As we scale we need tools that are built to scale with us - we need to see expenses real time, we need to see duplicate spend. These types of insights are important to the health of our business.
Steve Padis, SVP Finance & Strategy, Barry's
The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

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