As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be a. expensed as R&D costs b. allocated to inventory and expensed to cost of goods sold when the software is sold c. capitalized and amortized over a 40-year period d. capitalized and amortized over a relatively short period, such as five years
As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be a. expensed as R&D costs b. allocated to inventory and expensed to cost of goods sold when the software is sold c. capitalized and amortized over a 40-year period d. capitalized and amortized over a relatively short period, such as five years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be
a. expensed as R&D costs
b. allocated to inventory and expensed to cost of goods sold when the software is sold
c. capitalized and amortized over a 40-year period
d. capitalized and amortized over a relatively short period, such as five years
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