European Financial and Accounting Journal 2014, 9(3):4-24 | DOI: 10.18267/j.efaj.122

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

Marie Kubáňková1, Jaroslava Hyršlová2
1 Ing. Marie Kubáňková - Ph.D. Student; Department of Management Accounting, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic, ,
2 Doc. Ing. Jaroslava Hyršlová, Ph.D. - Associated Professor; Department of Transport Management, Marketing and Logistics, Jan Perner Transport Faculty, University of Pardubice, Studentská 95 532 10 Pardubice, Czech Republic, .

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
JEL classification: M21

Published: October 1, 2014  Show citation

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Kubáňková, M., & Hyršlová, J. (2014). Life Cycle Perspective of R&D Investment Management: Case Study Approach. European Financial and Accounting Journal9(3), 4-24. doi: 10.18267/j.efaj.122
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