As computer software to be sold, leased, or otherwise marketed is developed, software production costs should be accounted for according to which of the following? $\begin{array}{lll}
& \text { Expense up to} & \text { Capitalize afte}\
& \text { technological feasibility } & \text { general release}\
\text { I. } & \text { Yes } & \text { Yes } \
\text { II. } & \text { Yes } & \text { No } \
\text { III. } & \text { No } & \text { Yes } \
\text { IVI } & \text { No } & \text { No }
\end{array}$

A)I
B)II
C)III
D)IV

Question

As computer software to be sold, leased, or otherwise marketed is developed, software production costs should be accounted for according to which of the following? $\begin{array}{lll}
 & \text { Expense up to} & \text { Capitalize afte}\
 & \text {  technological feasibility } & \text { general release}\ 
\text { I. } & \text { Yes } & \text { Yes } \
\text { II. } & \text { Yes } & \text { No } \
\text { III. } & \text { No } & \text { Yes } \
\text { IVI } & \text { No } & \text { No }
\end{array}$

A)I
B)II
C)III
D)IV

Quizplus · Accepted Answer

Software production costs should be accounted for as product costs, which are recorded as inventory until the software is sold, leased, or otherwise marketed. Option B, which describes product costs being inventory until the software is sold, leased, or otherwise marketed, is the correct choice. Options A, C, and D refer to depreciation methods for fixed assets and are not relevant to software production costs.

As Computer Software to Be Sold, Leased, or Otherwise Marketed