64 FInAnCIAl MAnAGEMEnT FoR non-FInAnCIAl MAnAGERS TA b lE 5 . 8 Research and development budget for 2013 (000s) Resource Total budget 90,000 20,000 2,000 6,000 118,000 Pure Project 1 40,000 10,000 0 2,000 52,000 Pure Project 2 40,000 5,000 0 2,000 47,000 Applied Project 1 10,000 5,000 2,000 2,000 19,000 Salaries Materials Licenses Lab costs Totals The accounting and taxation treatments of pure and applied research are different and they need to be accounted for separately. A research and development budget should show the costs of each project and differentiate between pure and applied research cost as in