The entire cost of developing computer software should be capitalized and amortized over the software's useful life.

Question

Quizplus · Accepted Answer

According to accounting principles, the costs of developing computer software can be divided into research phase costs, which must be expensed as incurred, and development phase costs, which can be capitalized once technological feasibility is established. Therefore, not the entire cost is capitalized.

The Entire Cost of Developing Computer Software Should Be Capitalized