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Asked Jan 22, 2019
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If you plan to open a business, what do you need to consider when compiling your costs?

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Expert Answer

Step 1

While opening up the new business, the main factor to be considered while compiling the cost is to classify the cost into fixed cost and variable cost. 

The fixed cost is a cost whcih will have to be incurred in the business, while these are being in operations irrespective of level of activity. Therefore, this will be sunk cost for the busi...

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