Which factor determines the capitalisation of Which factor determines the capitalization ofwebsite development costs?a. Management's intentionb. Expected revenue generationc. Time spent on developmentd. Application development stage

Concept of Capitalization:Capitalization refers to the accounting process of recognizing certain…

Answered: Which factor determines the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 13MC: A responsibility center structure that considers investments made by the operating segments by using...

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Similar questions

Why is it important to make the distinction between company required rate of return (WACC) and project required rate of return when evaluating projects?
A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called_______. A. return on investment B. residual income C. a profit center D. a discretionary cost center
Explain the benefits of a return on investment structure within an investment center framework. It may help to think of an example using an existing company.
Critically analyse the benefits and limitations of the NPV and Accounting Rate of Return (ARR) investment appraisal methods
The return on total assets evaluates management's use of resources, essentially evaluating the return on the owner's investment True False
Which control is not a part of the fixed asset system?a. formal analysis of the purchase requestb. review of the assumptions used in the capital budgeting modelc. development of an economic order quantity modeld. estimates of anticipated cost savings
How are research and development expenses treated?
A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called ________. A) residual income B) a profit center C) a discretionary cost center D) return on investment
The profitability index of a project is also referred to as the project's Blank______. Multiple choice question. average accounting return benefit/cost ratio internal rate of return effective annual rate
Calculating return on Investment for an Investment center is defined by the following formula: Multiple Cholce Income/Average invested assets. Contribution margin/Average invested assets. Contribution margin/Ending assets. Net income/Ending assets. Gross profit/Ending assets.
Which approach to investment analysis is "best" in terms of accounting for both the timing and amount of revenue streams from a potential investment? A. the payback period B. the simple rate of return C. the net present value D. the internal rate of return
Explain the conceptual issues involved in the cost of product development and the definition of an asset that can be used to determine whether development expenditure should be treated as an expense or an asset.

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Which factor determines the capitalization of website development costs? a. Management's intention b. Expected revenue generation c. Time spent on development d. Application development stage