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

question 108

Multiple Choice

Based on GAAP, most software development 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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