ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -These costs include costs like startup insurance fees, legal fees, registration charges, accountant’s fees, etc.. Startup costs are also referred to as startup expenses, preliminary expenses, or pre-opening expenses.

Detailed explanation-2: -Startup costs are the expenses incurred during the process of creating a new business. Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology. Post-opening startup costs include advertising, promotion, and employee expenses.

Detailed explanation-3: -What are examples of startup costs? Examples of startup costs include licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities.

Detailed explanation-4: -Costs incurred in the formation of a firm, and in advertising, promotional activities, employee training, etc., before the firm can open its doors for business, can be claimed as deduction against the income chargeable to tax.

Detailed explanation-5: -A start-up budget is an itemized list of income and expenses for a new business. Additional items to consider when creating or reviewing a start-up budget include research expenses, insurance, license and permit fees, and equipment and supplies.