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sir
in example 2, the last part ( $1 million was spent on marketing and $0.5 million on training sales staff on how to demonstrate the use of the product.)
i see that money was not spent on the research since booker is making marketing for the product.
so why we can’t capitalize that amount?Hi,
These benefits of these costs cannot be controlled by the company and hence they are written off through profit or loss. Whoever has received the training can leave the company with the knowledge gained from the training received, and the marketing is just to launch the product initially, there is no long-term benefit.
Thanks
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