I’m working on a accounting discussion question and need an explanation and answer to help me learn.
Watch the following video about the construction of an Amazon fulfillment center and then answer the following question.
Explain the general accounting principle of capitalizing costs with respect to long-term assets and whether the following costs should be capitalized as part of the cost of the fulfillment center:
- Road improvement costs (assume these are for private roads owned by Amazon)
- Staff hiring and training costs