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Which of the following are start-up costs?

1) purchase of initial inventories
2) legal costs to incorporate
3) one-time opening costs for a retailer
4) organization costs
5) first-year salaries

User Plesiv
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1 Answer

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Final answer:

Start-up costs include the purchase of initial inventories, legal costs to incorporate, one-time opening costs for a retailer, and organization costs, but not first-year salaries as they are ongoing expenses.

Step-by-step explanation:

Among the choices provided, the start-up costs for a new business would typically include the purchase of initial inventories, legal costs to incorporate, one-time opening costs for a retailer, and organization costs. However, first-year salaries are not generally classified as start-up costs because they are ongoing expenses that continue beyond the initial start-up phase. Start-up costs are often one-time expenses necessary to launch the business, such as purchasing inventory to get the business started, the legal costs associated with incorporating the business, the one-time costs of opening a retail location, and any costs involved in organizing the business before it begins operating. These costs are necessary for a business to establish itself and begin operations but are distinct from the recurring costs like employee salaries.

User Miniwark
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