COST ACCOUNTING
FINANCIAL TERMINOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a start up cost?
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Staff Wages
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Electricity bill payment
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Purchasing a van
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Break Even
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Explanation:
Detailed explanation-1: -A startup cost is any expense incurred when starting a new business. Startup costs will include equipment, incorporation fees, insurance, taxes, and payroll.
Detailed explanation-2: -Business startup costs are intangible assets (no physical form), so they must be amortized (spread out over 15 years, for example), beginning with the year your business begins.
There is 1 question to complete.