The proper accounting for the costs incurred in creating computer software products that are to be sold, leased, or otherwise marketed to external parties, is to
A)capitalize all costs until the software is sold to external parties.
B)charge research and development expense when incurred until technological feasibility has been established for the product.
C)charge research and development expense only if the computer software has alternative future uses.
D)capitalize all costs as incurred until a detailed program design or working model is

Question

Quizplus · Accepted Answer

The generally accepted accounting principle is to charge research and development expense when incurred until technological feasibility has been established for the product. After technological feasibility has been established, all costs are capitalized until the software is available for general release to customers.

The Proper Accounting for the Costs Incurred in Creating Computer