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

A start-up salute is a toll that you start with for workout in the flower shop it would be a deposit on the shop and the first months rent. Also the first chain reactor of stock, advertisement a sign, table, counter, till and a credit card machine. The in operation(p) cost be be that you carry on paying for passim the conviction your line of merchandise is open, for example in the flower shop they would be rent, wages, heating and lighting, insurance, loan interest, drawing (personal salary) , ribbons, stock, boxes and plastic sheets. So the difference amongst the two above would be that start-up costs are only when the business is starting to get up and running and the operating costs are something you pay for throughout the time your business is open.Fixed costs are a part of operating costs but fixed costs would suck in 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 70 0 per month, mages. This would cost 500 per month. Heating and lighting would cost 200 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 four hundred per month. Fixed costs do not vary without put, so withstand the flower shop gets loads of customers or not they still have to pay fixed costs. A variable cost is a cost that can vary throughout the time your business is open, a effectual example for the flower shop is packaging , as the more flowers you give away the more packaging you would need, the same as ribbon, plastic sheets and gift tags.