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There are mainly two types of costs which are start-up cost(capital expenditure) and running cost (revenue expenditure).
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Cost There are mainly two types of costs which are start-up cost(capital expenditure) and running cost (revenue expenditure).Start up cost is a lump sum of money that you have to given out at once (more or less, besides of using hire purchase or leasing) at the first place you start up the business. Start up costs are mainly fixed costs, e.g. table, equipment, a considerable amount of raw material (in order to start trading), rent, etc. Running costs includes mainly variable costs (direct costs), e.g. electricity, raw material for every month, rent, business rate, insurance, etc. The following table shows the basic costs that I need to pay to start up my business: Capital expenditure Revenue expenditure per month Fixed costs Variable costs Fixed costs Variable costs 1) Table 2) Oven 3) Cabinet 4) Advertisement 5) refurbishment none 1) Electricity 2) Insurance 3) Business rate 4) Rent 1) ingredients 2) packing 3) water bills 4) electricity Estimate costs Capital expenditure (fixed costs): £ 10000 Revenue...
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