Start-up And Running Costs Flashcards
1
Q
What is a start-up cost?
A
A start-up cost is a one off cost that occurs before a business starts trading
2
Q
What is a running cost?
A
A running cost is a cost that is paid on a regular basis to ensure operation of a business
3
Q
What are examples of start up costs?
A
Machinery, buildings and premises, fixtures and fittings, specialised equipment, delivery vehicles and other things such as tills
4
Q
What are examples of running costs?
A
Stock, raw materials, bills, wages, rent and a monthly advert
5
Q
What is stock?
A
Stock is what the business sells
6
Q
What are raw materials?
A
Raw materials are materials that are used to create stock, they are usually the components of a product
