Question

Agent Norm just started working for Sunshine Realty. He was required to pay a monthly fee of $120 for a phone and $50 for desk space. The $170 is usually referred to as what

Answer 1

Startup cost, is the right answer.

Step-by-step explanation:

Startup cost, the cost that is incurred by the agent is a startup cost because when a person starts working then there is some cost that he has to bear. For example, if a person starts a business then he has to spend the money to get raw materials, land, equipment, etc. Here, theses spendings are done to start the business so this is the startup cost. Similarly, the Agent has to bear the monthly fee for phone and desk space. Thus, it is a startup cost.