Question

The total amount of expenditures of the company is how many times of expenditure on research and development?

• A. 27
• B. 20
• C. 18
• D. 8

Answer 1

The correct option is B 20

Let the total expenditures be Rs. x.
Then, the expenditure on Research and Development (R & D)
= Rs. (5% of x)
= Rs. $(\frac{5}{100}\times x)$
= Rs. $\left(\frac{x}{20}\right)$
$\therefore$ Ratio of the total expenditure to the expenditure on R & D
$=\left(\frac{x}{x/20}\right)$
$=\left(\frac{20}{1}\right)$
Then, the total expenditure is 20 times the expenditure of Research and Development.