Question: Flexisoft Company has had excellent success in developing business software for computers. Management has followed the accounting practice of deferring the research costs for the

Flexisoft Company has had excellent success in developing business software for computers. Management has followed the accounting practice of deferring the research costs for the software until sufficient sales have developed to cover the software cost. Because of past successes, management believes it is improper to charge software research costs directly to expense as current requires. What are the pros and cons of immediately deferring or expensing these costs?

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