When would initial direct costs be recognized as an expense?

Name: When would initial direct costs be recognized as an expense?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Initial direct costs are typically recognized as an expense in the period incurred for entities like brokers, dealers, and lessors not in the business of manufacturing or leasing. These entities do not capitalize such costs as part of an asset but rather recognize them as expenses, reflecting the cost of facilitating a transaction or agreement.

When Would Initial Direct Costs Be Recognized as an Expense