ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
taxes that must be paid after selling goods
|
|
|
the expenses a firm must pay before it can begin to produce and sell goods
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Startup costs are the non-recurring expenditures that incur during the process of establishing a new business. All startups are different from each other. Hence, their costs also vary from one another. These costs include costs like startup insurance fees, legal fees, registration charges, accountant’s fees, etc..
Detailed explanation-2: -Start-up costs include amounts paid for the following: An analysis or survey of potential markets, products, labor supply, transportation facilities, etc. Advertisements for the opening of the business. Salaries and wages for employees who are being trained and their instructors.
Detailed explanation-3: -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-4: -Deducting and Amortizing Business Startup Costs 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.
Detailed explanation-5: -One-time expenses are the initial costs needed to start the business. Buying major equipment, hiring a logo designer, and paying for permits, licenses, and fees are generally considered to be one-time expenses.