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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 4C
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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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