QUESTION IMAGE
Question
for each statement about start-up costs and operating costs, select true or false
true
operating costs include payroll.
logo and website design are examples of start-up costs.
operating costs include your down payment on rental property
false
business insurance is a start-up cost.
To solve this, we analyze each statement:
1. "Operating costs include payroll"
Operating costs are ongoing expenses for running a business, and payroll (employee salaries) is a typical operating cost. So this is True.
2. "Logo and website design are examples of start - up costs"
Start - up costs are one - time expenses to get a business started. Designing a logo and website before the business operates is a start - up cost. So this is True.
3. "Operating costs include your down payment on rental property"
A down payment on rental property is a capital expenditure (a start - up or investment - type cost), not an ongoing operating cost (which are recurring, like rent, utilities, payroll). So this is False (should be in "False" column).
4. "Business insurance is a start - up cost"
Business insurance is typically an ongoing operating cost (paid regularly to maintain coverage), not a one - time start - up cost. So this is False (matches its placement in the "False" column).
Final Categorization (for each statement):
- "Operating costs include payroll": True
- "Logo and website design are examples of start - up costs": True
- "Operating costs include your down payment on rental property": False
- "Business insurance is a start - up cost": False
If we consider the task as classifying each statement to True/False:
- "Operating costs include payroll": Operating costs are recurring expenses, and payroll is a regular expense, so True.
- "Logo and website design are examples of start - up costs": Start - up costs are one - time costs to launch a business, and logo/website design are pre - operation costs, so True.
- "Operating costs include your down payment on rental property": Down payment is a capital outlay (not recurring), so not an operating cost, so False.
- "Business insurance is a start - up cost": Business insurance is typically recurring (operating cost), not a one - time start - up cost, so False.
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- "Operating costs include payroll": True
- "Logo and website design are examples of start - up costs": True
- "Operating costs include your down payment on rental property": False
- "Business insurance is a start - up cost": False