The Proper Accounting for the Costs Incurred in Creating Computer

question 7

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 created.