MANAGEMENT

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. Failure in setting realistic goals is also a culprit here.

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: -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-4: -What are examples of startup costs? Examples of startup costs include licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities.