(1) Because the amortization of organization costs usually is immaterial in dollar amount, th is convenient treatment is justified by the accounting principle of materiality.

(2) In the balance sheet, organization costs appear under the other assets caption.

(3) Conceptually, organization costs are an intangible asset that will benefit the corporation over its entire life.

(4) Furthermore, banding with Coase's dissertation of the "organization costs", we can also explain the boundary of the firm with the coherence between the history and the logic.

(5) These costs are charged to an asset account entitled organization costs.