Amortization of Capitalized Computer Software Costs Is

question 124

Multiple Choice

Amortization of capitalized computer software costs is:

• A) Either the percentage-of-revenue method or the straight-line method at the company's option.
• B) The greater of the percentage-of-revenue method or the straight-line method.
• C) The lesser of the percentage-of-revenue method or the straight-line method.
• D) Based on neither the percentage-of-revenue nor the straight-line method.

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Definitions:

Departmental Production Report

A document that tracks the output, efficiency, and costs of a specific department within a manufacturing facility.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Weighted Average Method

An inventory costing method that averages the cost of all similar items in inventory, assigning a single cost to each unit regardless of purchase date.

Cost Per Equivalent Unit

A calculation used in process costing that divides the total cost by the number of units produced, taking into account partial completion of units at the end or beginning of an accounting period.