Research & Development Cost (R&D)

R&D costs consists of design and development cost incurred from the conceptual development to system demonstration.

Major cost elements include:

• Manpower required to design, develop, test, & validate the system
• Prototype tools & prototype parts required to build and test the system

R&D costs are non-recurring cost.

Typical R&D cost elements that should be considered during cost estimation process and where in the time continuum this cost occur are shown below.