All of the following items are expensed as start-up costs except
A) promotional costs for opening a new facility.
B) one-time costs for conducting business in a new territory.
C) licensing fees for starting a new franchise.
D) accounting fees for forming a new company.

Question

Quizplus · Accepted Answer

Licensing fees for starting a new franchise are not expensed as start-up costs; instead, they are typically capitalized and amortized over their useful life because they provide a benefit over multiple periods.

All of the Following Items Are Expensed as Start-Up Costs