CAF-6 · Chapter 12 · Question 6 of 15
According to SIC 32 (Web Site Costs), how should a company account for the costs incurred during the 'Planning stage' of developing a website?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Expense as incurred.
Explanation
Under SIC 32, the planning stage of a website is similar to the research phase. Therefore, all costs incurred during the planning stage must be recognized as an expense when incurred.
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