The Proper Accounting for the Costs Incurred in Creating Computer

question 22

Multiple Choice

The proper accounting for the costs incurred in creating computer software products that are to be sold, leased, or otherwise marketed to external parties, is to

• A)capitalize all costs until the software is sold to external parties.
• B)charge research and development expense when incurred until technological feasibility has been established for the product.
• C)charge research and development expense only if the computer software has alternative future uses.
• D)capitalize all costs as incurred until a detailed program design or working model is

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Definitions:

Red Light

A visual signal indicating the prohibition of traffic movement, or used in various devices and systems to indicate a warning or stop condition.

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened or increased in frequency by a consequence that follows it.

Superstitious Behaviour

Actions that are repeated because they are associated with success or avoidance of failure, despite having no causal relationship to the outcomes.

Aversive Reactions

Aversive Reactions are negative responses, either physical or psychological, to a stimulus that an individual finds unpleasant or noxious.