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.

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A natural petroleum product that’s extracted from the ground and is a global primary energy source, undergoing refinement for various uses.

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Heavy vehicles designed for agricultural use, mainly for plowing, tilling, and planting fields.

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An economic system where a country or entity is self-sufficient and does not engage in trade with external parties.

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The capability of an entity to generate a product or service with a lesser opportunity cost compared to others, resulting in enhanced trading efficiency.