Answer:

Introduction:
In business, companies invest in new products with the hope of generating profits. However, not all new products are successful, and some may result in losses. When a company incurs costs related to developing or experimenting with a new product that doesn't result in success, it's important to classify these costs correctly as either revenue expenditure, capital expenditure, deferred revenue expenditure, or none.

Revenue expenditure:
Revenue expenditure is an expense incurred in the normal course of business operations to maintain the existing level of production or services. Costs related to experimenting with a new product that doesn't result in success can be classified as revenue expenditure if the expenses were incurred to maintain the existing level of production or services. These costs are fully deductible from the company's taxable income in the year they are incurred.

Capital expenditure:
Capital expenditure is an expense incurred to acquire or improve a long-term asset, such as buying a new building, machinery, or equipment. Costs related to experimenting with a new product that doesn't result in success can be classified as capital expenditure if the expenses were incurred to acquire or improve an asset that will provide benefits for many years. These costs are not deductible from the company's taxable income in the year they are incurred but instead are capitalized and depreciated over the useful life of the asset.

Deferred revenue expenditure:
Deferred revenue expenditure is an expense incurred in the current year but is expected to provide benefits for multiple years. Costs related to experimenting with a new product that doesn't result in success can be classified as deferred revenue expenditure if the expenses were incurred to develop a product that has the potential to provide benefits for multiple years. These costs are not deductible from the company's taxable income in the year they are incurred but instead, are spread over the useful life of the product.

None:
If the costs related to experimenting with a new product that doesn't result in success cannot be classified as revenue expenditure, capital expenditure, or deferred revenue expenditure, they should be classified as none. These costs are not deductible from the company's taxable income and are written off immediately.

Conclusion:
In conclusion, classifying costs related to experimenting with a new product that doesn't result in success can be challenging. It's important to correctly classify these costs as either revenue expenditure, capital expenditure, deferred revenue expenditure, or none, as this will affect the company's taxable income and financial statements.

It is a part of research and development and that is a capital expenditure