Internal Use Software Costs Are

question 8

Multiple Choice

Internal use software costs are

• A) always expensed.
• B) always capitalized.
• C) capitalized once the preliminary cost is completed.
• D) capitalized once the preliminary cost is completed and the software will be used to perform the function intended.

---

Definitions:

Cash Flow Verification

The process of auditing and validating the cash flows reported by a company to ensure accuracy and prevent fraud.

Capital Budgeting

The process of planning and managing a company’s long-term investments in projects or assets.

Technical Inputs

Elements related to the technological aspects of a project or system, including machinery, design parameters, and software requirements that contribute to its overall functionality and efficiency.

Time Value

The idea that money currently in hand is more valuable than an identical sum received later, because of its ability to earn more over time.