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NO HANDWRITTEN ANSWERS PLEASE Describe start-up costs and why you need to determine what they are.

NO HANDWRITTEN ANSWERS PLEASE

Describe start-up costs and why you need to determine what they are.

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Answer #1

Start up cost are defined as one time activities related to opening a new facility or new class of customer , initiating a new process in an existing facility , or some new operation.

It is important to determine startup costs as it gives the business establishment an estimate of the financial resources required to start the new facility. Once the estimate is available, the firm owners can start the process of raising the required funds in the form of debt, equity or a combination of both.

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