Cebrex Software Began a New Development Project in 2017

question 59

Multiple Choice

Cebrex Software began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was available for release to customers at the beginning of 2019. Development costs incurred prior to June 30, 2018, were $3,200,000 and costs incurred from June 30 to the product release date were $1,400,000. The economic life of the software is estimated at four years. For what amount will software be capitalized in 2018?

• A) $0.
• B) $5,600,000.
• C) $1,400,000.
• D) $3,200,000.

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Definitions:

Promotional Dollars

Funds allocated by a company or brand for marketing activities aimed at promoting their products or services to increase consumer engagement and sales.

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized as product, price, place, and promotion.

Not-Invented-Here Problem

A tendency within organizations to reject or not use products, research, or knowledge because they originate from outside the organization, often leading to a reinvention of the wheel or missed opportunities.

Product Quality

The degree to which a product meets or exceeds customer expectations in terms of durability, reliability, and performance.