DEVELOPMENT EXPENSE Meaning and
Definition
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Development expense refers to the costs incurred in the process of creating, improving, or expanding a product, service, or a project. It encompasses the various activities aimed at advancing and enhancing the quality, functionality, or capabilities of a specific entity. These expenses are typically associated with research, design, prototyping, testing, and implementation phases.
Development expenses can encompass both tangible and intangible investments. Tangible expenses include the acquisition of equipment, materials, or software needed for the development process, while intangible expenses involve the time, effort, and expertise of individuals engaged in research, analysis, coding, or programming.
These expenses are crucial for businesses or organizations seeking to innovate, transform, or introduce new offerings. They enable advancements in technology, production methods, or product features, often leading to competitive advantages and improved customer satisfaction.
In accounting, development expenses are recognized as an investment rather than an immediate cost. They are typically capitalized and spread over time, as they are expected to generate future benefits, such as increased revenues, market share, or operational efficiencies. However, it is important to assess the potential risks and uncertainties associated with development projects, considering factors like market demand, competition, and technological advancements that may impact the successful deployment and the return on investment (ROI) of such expenses.
Common Misspellings for DEVELOPMENT EXPENSE
- sevelopment expense
- xevelopment expense
- cevelopment expense
- fevelopment expense
- revelopment expense
- eevelopment expense
- dwvelopment expense
- dsvelopment expense
- ddvelopment expense
- drvelopment expense
- d4velopment expense
- d3velopment expense
- decelopment expense
- debelopment expense
- degelopment expense
- defelopment expense
- devwlopment expense
- devslopment expense
- devdlopment expense
- devrlopment expense
Etymology of DEVELOPMENT EXPENSE
The term "development expense" is composed of two main parts: "development" and "expense".
The word "development" originates from the Latin word "developmentum", which comes from the verb "desveloppare", meaning "to unveil" or "to unwrap". It was initially used in the 16th century to refer to the act of unfolding or unrolling something, often in a physical or tangible sense. Over time, the term began to be used metaphorically to describe the unfolding or progress of ideas, concepts, or processes.
The word "expense" has its roots in the Latin term "expensa", which involves the past participle of "expendere" meaning "to weigh out" or "to pay out". It relates to the act of spending or consuming resources, especially money, on a particular endeavor or purpose.
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