Development costs may be capitalized if
A) the resulting product or service is technically feasible.
B) the entity has sufficient resources to complete the project.
C) all of these (all of these criteria, in addition to others, must be met in order for development costs to be capitalized).
D) the entity intends to use or sell the resulting product or service.

Question

Quizplus · Accepted Answer

All of the criteria listed (technical feasibility, sufficient resources, intention to use/sell the resulting product or service) must be met in order for development costs to be capitalized. Other criteria may also need to be met, such as the ability to reliably measure the costs and the likelihood of future economic benefits.

Development Costs May Be Capitalized If