1. Company: Lambda Pharmaceuticals

Scenario: Cost Control in Research and Development (R&D)

Data:

• Annual R&D Budget: $5,000,000
• Actual R&D Expenditure: $5,500,000
• Number of New Products Developed: 10

Requirements:

1. Calculate the budget variance.
2. Determine the cost per new product developed.
3. Analyze the reasons for the budget overrun.
4. Discuss strategies for better cost control in R&D.
5. Recommend ways to optimize R&D expenditure.