1. Company: Microsoft

Scenario: Research and Development Cost Control

Data:

• Annual R&D Budget: $10,000,000
• Actual R&D Expenditure: $11,500,000
• Number of Projects: 15

Requirements:

1. Calculate the budget variance.
2. Determine the cost per project.
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.
6. Evaluate the impact of R&D cost control on innovation.