How R&D differ from more standard financial measures
Not what you're looking for?
Explain how R&D measures differ from more standard financial measures. Do they tend to be leading or lagging measures? Compare how R&D and financial measures can be used together to make management decisions.
Purchase this Solution
Solution Summary
How R&D measures differ from more standard financial measures
Solution Preview
Financial measures such as balance sheet data are lagging measures in the sense that they provide the state of the company as of today while R&D measures can be termed as leading in the sense that they can be used to forecast future performance.
Financial measures provide the information about the company's past performance, but are not well suited for predicting future performances or for implementing or controlling the firm's strategic plan. While it is useful for tracking the physical assets, it is not that useful in the scenario where intangible assets such as customer loyalty constitute an ever increasing proportion of a company's market value. ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
Recent Feedback
- "Thank you. "
- "Thank you"
- "Thank you. I got 20/20 last week for my discussion you help me out with."
- "Thank you. Great Job. "
- "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)