Based on GAAP, most software production 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

Question

Quizplus · Accepted Answer

Most software production costs are expensed as R&D costs under GAAP, except for certain development costs incurred after technological feasibility is established, which can then be capitalized and amortized.

Based on GAAP, Most Software Production Costs Are Likely to Be