Question 1: Why would the vice president of a company who receives an annual bonus based on profitability of the company want you to create a income statement that classified startup costs, research costs and development costs as a product costs?
Question 2: What are the ethical considerations of reporting startup costs as product costs?
Question 3: As a corporate controller, how would you have explained to the vice president that you could not close the year end finanial accounting reports with this income statement.