The president for a new company with which you are consulting states, "We have undertaken some activities to start our business, and have incurred some related costs. I have heard of 'start-up activities,' but what does this mean? And, if our activities qualify as start-up activities, how should we account for these costs?"

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Search the Codification and provide an answer for the manager that summarizes the related GAAP. Include a Codification reference number for verification