For U.S.GAAP,software development costs are capitalized as intangible assets:
A) after a copyright is obtained.
B) once the technological feasibility of the product is established.
C) from the beginning of development.
D) once the product is introduced into the marketplace.

Question

For U.S.GAAP,software development costs are capitalized as intangible assets: 
A) after a copyright is obtained.
B) once the technological feasibility of the product is established.
C) from the beginning of development.
D) once the product is introduced into the marketplace.

Quizplus · Accepted Answer

According to U.S. GAAP, software development costs can only be capitalized as intangible assets once the technological feasibility of the product is established. This means that the company must be able to demonstrate that the software will be successful and can be completed, tested, and used as intended. Until this point, all costs associated with software development must be expensed as incurred.

For USGAAP,software Development Costs Are Capitalized as Intangible Assets