Question:
1. Given the focus of the campaign (introducing the new resturant to the community), do you favor capitalizing the cost of the campaign? Why or why not?
2. What is the advertising industry''s stance on the question? How do other coutries handle the capitalization of marketing costs?
3. Industry figures indicate that advertising effectiveness declines at an annual rate of 20%. How does that statistic affect your recommendations to the owner?
4. If you choose to capitalize, select and defend your choice for amortization term and method.