Bouden Company performed the following activities during 2013:
a. built an oil shale plant to test the feasibility of large-scale exploitation
b. tested a new type of machine to evaluate its potential usefulness in production
c. modified a machine to make it suitable for filling a customer's order
d. designed a new plant to produce the same products more efficiently
e. tested in an attempt to find a more efficient production method
Required:
Which of the activities are considered R&D? Justify your reasons for each answer.