10. Software production costs related to computer software that is to be sold, leased, or otherwise marketed should be accounted for in which of the following ways:

a. all software production costs should be recorded as R&D expense

b. all software production costs should be capitalized

c. all software production costs should be recorded in R&D expense until technological feasibility is established

d. all software production costs should be recorded in R&D expense until the product is available for general release to customers

11. As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be

a. expensed as R&D costs

b. allocated to inventory and expensed to cost of goods sold when the software is sold

c. capitalized and amortized over a 40-year period

d. capitalized and amortized over a relatively short period, such as five years

13. Concerning computer software to be sold, leased, or otherwise marketed, which of the following costs are inventoriable and thus included in cost of goods sold?

a. maintenance and customer support costs

b. design, coding, and testing costs incurred before technological feasibility is established

c. costs of software developed for internal use

d. costs of disks, software duplication, and training materials