All of the Following Statements Are True Regarding Accounting for Software

Multiple Choice

All of the following statements are true regarding accounting for software development costs except:

A) Firms must expense as incurred all costs incurred internally in developing computer software until such development achieves the technological feasibility of a product.
B) Firms must capitalize as incurred all costs incurred internally in developing computer software.
C) Researchers have found a significant association between costs and future earnings, which support capitalizing and amortizing product development costs permitted by U.S.GAAP and IFRS.
D) The interpretation of the meaning of technological feasibility has created diversity in the practice of accounting for software development costs.