Which of the following is NOT considered a start-up cost? A) Travel to prospective clients B) Analysis of business markets C) Legal Fees D) Advertisements
Understand the Problem
The question is asking to identify which of the given options is not typically categorized as a start-up cost for a business. Start-up costs are expenses that are incurred before a business begins operations, and this question aims to test knowledge of what these costs include.
Answer
Analysis of business markets is NOT a start-up cost.
B) Analysis of business markets is NOT considered a start-up cost.
Answer for screen readers
B) Analysis of business markets is NOT considered a start-up cost.
More Information
Start-up costs generally include expenditures that are necessary to start a business, like legal fees and advertisements. While market analysis is important for strategy, it is often not directly categorized under start-up costs, which involve more operational expenses.
Sources
- Startup costs: Book vs. tax treatment - Journal of Accountancy - journalofaccountancy.com
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