What does research and development costs include? Are R&D and production personnel wages, travel expenses, technology development expenses, and raw materials used for experiments considered R&D costs

What does research and development costs include? Are R&D and production personnel wages, travel expenses, technology development expenses, and raw materials used for experiments considered R&D costs?

R&D costs mainly include:

(1) New product design fees, new process specification formulation fees, and technical book and material fees and material translation fees directly related to R&D activities.

(2) Material, fuel and power costs directly consumed in R&D activities.

(3) Wages, salaries, bonuses, allowances and subsidies for on-the-job personnel directly engaged in R&D activities.

(4) Depreciation or rental fees for instruments and equipment specifically used for research and development activities.

(5) Amortization expenses of intangible assets such as software, patents, and non-patented technologies specifically used for research and development activities.

(6) Molds, process equipment development and manufacturing costs specifically used for intermediate testing and product trial production.

(7) On-site test fees for exploration and development technology.

(8) Fees for demonstration, review and acceptance of R&D results.

So, the wages of R&D and production personnel, travel expenses, technology development expenses, and raw materials used for experiments are all R&D costs.