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:

Sue

The act of bringing a lawsuit against someone or something, initiating legal proceedings in a court of law.

Cherry Wood

A type of hardwood commonly used in furniture, cabinetry, and other woodworking projects.

Breach

The violation of a law, obligation, tie, or standard, often referring to the breaking of a rule or agreement in a contract.

Reasonable Time

A legal concept that refers to a time span which is fair and appropriate under the circumstances for performing a contractual obligation or duty.