Software Development Costs Are Capitalized If They Are Incurred

question 32

Multiple Choice

Software development costs are capitalized if they are incurred:

• A) Prior to the point at which technological feasibility has been established.
• B) After commercial production has begun.
• C) After technological feasibility has been established but prior to the product availability date.
• D) None of these answer choices are correct.

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Definitions:

Projected Benefit Obligation

A financial measurement that estimates the total amount of benefits an employer is expected to pay out to participants in a defined benefit plan.

Present Value

A financial concept that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Salary Levels

Projected or anticipated salaries for employees, taking into account factors such as inflation, promotion prospects, and market trends.

Defined Contribution Plans

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but future benefits are based on the amount contributed and the performance of the investment options chosen by the participant.