Allscripts LD

4. Development costs related to computer software that is to be sold, leased, or otherwise marketed should be accounted for in which of the following ways?a. All software development costs should be capitalized until technological feasibility is established.b. All software development costs should be recorded in R&D expense until the product is available for general release to customers.c. All software development costs incurred between the establishment of technological feasibility and general release should be capitalized.d. All software development costs incurred between the establishment of technological feasibility and general release should be recorded as R&D expense.

Which of the following research and development and software development costs should be expensed? A) Costs incurred to modify or improve an existing profitable product. B) Software costs before technological feasibility C) Research and development purchased as part of an acquisition. D) Salary costs related to discovering a new product. E) Software development costs incurred after the software works and there is a viable market Which of the following may indicate impairment may have occurred? A) Cash discounts are offered on the products the company sells. B) The business environment is stable. C) A high gross profit percentage on products sold. D) A significant decrease in the useful life of the asset.

Software production costs related to computer software that is to be sold, leased, or otherwise marketed should be accounted for in which of the following ways: a. all software production costs should be recorded as R&D expenseb. all software production costs should be capitalizedc. all software production costs should be recorded in R&D expense until technologicalfeasibility is establishedd. all software production costs should be recorded in R&D expense until the product isavailable for general release to customers

As computer software is developed that is to be sold, leased, or otherwise marketed, software production costs should be accounted for as follows:                                  Expense up to                                   technological                                   feasibility                              Capitalize after general                                                                                          releasea.                                     Yes                                                Yesb.                                     Yes                                                Noc.                                      No                                                Yesd.                                      No                                                No

Which of the following is NOT part of a firm’s Total Cost of Ownership for an information system?     A.    IT personnel costs     B.    Installation costs for hardware and software     C.    Real Estate (floor space), heating, and cooling costs of data centers, computer centers, and server farms     D.    System downtime costs     E.    Cost of (the firm’s) goods sold (CGS)

Concerning computer software to be sold, leased, or otherwise marketed, which of the following costs are inventoriable and thus included in cost of goods sold? a. maintenance and customer support costsb. design, coding, and testing costs incurred before technological feasibility is establishedc. costs of software developed for internal used. costs of disks, software duplication, and training materials

Classify each of the following as either one-time or recurring costs: a. training personnel b. initial programming and testing c. systems design d. hardware costs e. software maintenance costsf. site preparation g. rent for facilities h. data conversion from old system to new system i. insurance costs j. installation of original equipment k. hardware upgrades

Which of the following costs would be capitalized? a. Cost of research to determine whether a market for the product exists. b. Salaries of research staff. c. Engineering costs incurred to advance the product to the full production stage. d. Acquisition cost of equipment to be used on current research project only.

Software development costs are capitalized if they are incurred: Select one: a. None of the other answers is correct. b. Prior to the point at which technological feasibility has been established. c. I want to leave this question blank d. After commercial production has begun. e. After technological feasibility has been established but prior to the product availability date.

Which of the following costs related to computer software is capitalized to an intangible asset account?   Question 4 options: a Costs of duplication and reproduction of software for sale b Development costs before technological feasibility is achieved c Coding and testing costs incurred to establish technological feasibility d Coding and testing costs incurred after technological feasibility is established but before the product master is completed

Which of the following activities should be expensedcurrently as R&D costs?(a) Testing in search for or evaluation of product orprocess alternatives.(b) Engineering follow-through in an early phase ofcommercial production.(c) Legal work in connection with patent applications orlitigation, and the sale or licensing of patents.

Which is the best definition of start-up costs? a. All activities associated with organizing a new entity. b. Organization costs. c. One-time activities for opening a new facility, introducing a new product or service, conducting business in a new territory, conducting business with a new class of customer, initiating a new process in an existing facility, or some new operation. d. Activities related to routine ongoing efforts to refine or otherwise improve the qualities of an existing product, service, process or facility.

Yau are the project munager for a technical implementstion project. The customer has requested that you factor in the after-the-project costs such as maintenance and sence. This is in example of which one of the following. A. Life griecosts B. Scope creep C Propect spin olf 0, Operations

What accounting treatment is required by SFFAS 10 with respect to costs incurred by a federal agency in developing software internally during the following software life cycle phases: preliminary design, development, and operations? TABLE: LIFE CYCLE PHASES Development Operations Expense Capitalize Expense Capitalize Capitalize Expense Expense Expense Capitalize Capitalize Capitalize Capitalize Expense, capitalize, expense Capitalize, capitalize, expense Expense, expense, capitalize Capitalize, capitalize, capitalize

All costs incurred to establish the technological feasibility of a computer softwareproduct to be marketed or leased should be * capitalized as an intangible asset.capitalized as an inventory.capitalized as property, plant and equipmentcharged to expense when incurred

For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, or selling and administrative. (a) Amortization of patents on factory machine (b) Components used to make product A (Select one) (Select one) (Select one) (c) Direct materials used (d) Factory utilities (e) Property taxes - factory. (f) The cost of a hard-drive installed in a computer for a computer assembling company (g) The wages of employees who assemble computers from components (h) The wages of the company's accountant (i) Wages of the product tester () Wages to assembly line A workers (Select one) (Select one) (Select one) (Select one) (Select one) (Select one) (Select one)

Knowledge Check 01 Which of the following factors should be considered when deciding whether to keep a product line or drop it? (Select all that apply) Check All That Apply Opportunity costs of using the production facility currently being used for the product line Revenues generated by the product line Variable costs incurred in manufacturing the product Direct fixed costs associated with the product line Common fixed costs allocated to the product line Research and development costs spent on designing the product line