The cost of developing computer software should be capitalized and amortized over the software's useful life after it has been proved technologically feasible.

Question

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According to the Generally Accepted Accounting Principles (GAAP), the cost of developing computer software should be capitalized and amortized over the software's useful life after it has been proved technologically feasible. This is because development of software involves significant costs that can provide future economic benefits to the company. Therefore, it is considered an intangible asset that should be capitalized and amortized over its useful life.

The Cost of Developing Computer Software Should Be Capitalized and Amortized