Start-Up and Organization Costs

question 193

Multiple Choice

Start-up and organization costs

• A)are capitalized,but never amortized.
• B)are capitalized and amortized,usually over five years.
• C)are expensed in the year incurred.
• D)appear on the balance sheet as a current asset.

---

Definitions:

Motivation

Motivation is the internal drive or external stimulus that prompts individuals to act or behave in a particular manner towards achieving a goal.

Consumer Involvement

Refers to the level of interest and personal relevance a consumer feels towards a particular product or service.

Involvement

The degree of interest and attention that an individual devotes to a particular activity, issue, or item, often affecting decision-making processes.

Motivation

The psychological process that arouses and directs goal-oriented behavior.