The costs associated with the development of software,for sale or internal use,should be expensed in the period incurred.

Question

Quizplus · Accepted Answer

The costs associated with the development of software should be capitalized if certain criteria are met, such as if it can be reliably measured, it is probable that future economic benefits will be obtained, and the cost can be attributed to the software's development. Once these criteria are met, the costs are capitalized and then amortized over the software's useful life. Therefore, the costs are not expensed in the period incurred.

The Costs Associated with the Development of Software,for Sale or Internal