Identify the Difference Between Start Up and Operating Costs, Variablecpsts and Fixed Costs Essay

A start-up cost is a cost that you start with for pattern in the heyday hook it would be a deposit on the shop and the first calendar months rent. Also the first lot of stock, ad a sign, table, counter, till and a credit card machine. The operating be are costs that you carry on throwing for throughout the time your parentage is open, for example in the flower shop they would be rent, wages, hotness and lighting, insurance, loan interest, drawing (personal salary) , ribbons, stock, boxes and plastic sheets. So the difference between the ii above would be that start-up costs are only when the business is head start to get up and running and the operating costs are something you salary for throughout the time your business is open. situated costs are a part of operating costs but fixed costs would contrive one price that doesnt change throughout the time your business is open thats why they call it fixed, the fixed costs would be rent. This would cost 700 per month, mages. This would cost 500 per month. Heating and lighting would cost cc per month, insurance would cost 160 per month, loan interests cost 40 per month on top of how much you had loaned to you and drawings (personal salary would cost 400 per month. Fixed costs do not vary without put, so weather the flower shop gets loads of customers or not they still have to pay fixed costs. A variable cost is a cost that scum bag vary throughout the time your business is open, a good example for the flower shop is packaging , as the more flowers you sell the more packaging you would need, the same as ribbon, plastic sheets and gift tags.