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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Definitions:

Hostile

Exhibiting or feeling antagonism, aggression, or displaced anger towards others, often manifesting in unfriendly or confrontational behavior.

Friendly

Characterized by kindness, warmth, and approachability, often signaling a willingness to interact in a positive way.

Behavior

The actions or reactions of an individual in response to external or internal stimuli.

Schemata

Cognitive structures that represent organized knowledge about concepts, objects, and events, helping in the understanding and processing of information.