Soweto Ltd is unsure of how to obtain computer software. Four possibilities are:

1. Purchase computer software externally, including packages for payroll and general ledger.

2. Contract to independent programmers to develop specific software for the companys own use.

3. Buy computer software to incorporate into a product that the company will develop.

4. Employ its own programmers to write software that the company will use.

Discuss whether the accounting will differ depending on which method is chosen.

Question: Capitalized or expensed, please explain !