How do you handle depreciation or capital vs operational expense in cloud accounting?

How do you handle depreciation or capital vs operational expense in cloud accounting?

• A. Treat all cloud usage as capital expenditure
• B. Decide capitalizing large, long-lived assets where appropriate; treat ongoing usage as OPEX; align with accounting policies
• C. Ignore depreciation entirely
• D. Expense all costs immediately regardless of policy

Answer: (B)