Based on GAAP, Most Software Production Costs Are Likely to Be

question 49

Multiple Choice

Based on GAAP, most software production costs are likely to be

• A)expensed as R&D costs
• B)allocated to inventory and expensed to cost of goods sold when the software is sold
• C)capitalized and amortized over a 40-year period
• D)capitalized and amortized over a relatively short period, such as five years

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Definitions:

Secondary Prevention

Level of preventive medicine that focuses on early diagnosis, use of referral services, and rapid initiation of treatment to stop the progress of disease processes.

Chest Discomfort

A common symptom that can be caused by a wide range of conditions, from muscular strain to heart problems.

Electrocardiogram

A test that records the electrical activity of the heart to detect any heart problems.

Fluoride

A mineral used in dental care to strengthen tooth enamel and prevent cavities, often added to toothpaste, mouthwash, and some public water supplies.