Is Software an Investment or an Expense?[2]
[2] I want to acknowledge discussions with my colleague, Dr. Andy Felo, Assistant Professor of Accounting, Penn State University, as contributing to this section.
Is software an investment or an expense? The answer, of course, is that it depends. For example, to the owner of a small car dealership, a customer information system mandated by the manufacturer might seem an outrageous expense, not an investment. On the other hand, if it can be demonstrated that this software can significantly increase sales volume, then the dealership owner might see that software as an enabling technology with a substantial ROI.
Generally accepted accounting principles,[3] or GAAP, as they are collectively known to CFOs, ...
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