Describe the effect of these two accounting treatments

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The 2008 annual report of Cisco Programs discloses that the firm bills all promoting and analysis and improvement prices, whereas capitalizing all software program improvement prices.

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Describe the effect of these two accounting treatments on the monetary statements, talk about these treatments in phrases of the nature of these specific prices and the matching precept, and touch upon administration incentives that may affect Cisco Programs to favor one or the different accounting remedy.