All of the following statements are true when analyzing the research and development expense for Bell Company except: If inefficiencies have been eliminated in the research and development area that is a good reason for this expense to decline. The large decline in research and development expenses should cause an analyst to investigate the causes of the decline. If research and development expenses were reduced in order to increase profits, the ultimate outcome may detrimental to future sales growth. Reducing research and development expenses is a desired outcome for firms involved in these activities