Research and Development and Other Expenses

Why is R&D important to most organizations? As a manager, how can you ensure that you are supporting an acceptable level of research? Does the type or size of an organization matter?
What do you believe is the best way to monitor, control, and account for expenses that are necessary for running a business but don’t contribute to the bottom line? How can employees assist in keeping expenses under control?
Are there any expenses you believe should have leeway in budgeting?