Unit 19 notes
Running Cost: means a day-to-day of selling or producing goods
They include:
Advertising
Raw materials
Goods
Power rent and rates
Advertising: a new product like Nike shoes should be advertised so that the customers can know there is a new shoe product in NIKE by TV advertising or public advertising.
Rent and Rates:
Rates are when you pay rent for the property, if the property is bought.
E.g: some business in countries will have to pay business rates.
Power: when a business like a shoe business would need machinery and equipment to power to operate the shoes and would sell it to the consumer. The power can also be coal, gas and electricity to use for powering up a business.
Example:
• Shoe or Shirt Company needs
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Like all the employees would get paid every week for their hard work in the business and like a coffee business would hire employees to do basic jobs and later they would get paid every week or month.
Start up cost:
When a business is setting up, before goods can be produced
Here is the planning of new product:
• Machinery
• Market research
• Premises
• Fixture and fitting
Market research:
The research is carried out by itself or it can be a market research. But if the business is carried out, it will have to pay its own market research.
Here is the business own market research:
• Materials
• Other cost= telephone charges and the published report of the business.
Premises:
When a product is being made depending on what type of product they are planning to be making.
For example:
• A new business can be planning a new airline
• A new burger company
Machinery and Equipment:
When a business is making its own products like a shoe company would require a machinery and equipment to build its shoe product so that it can sell the product to the consumer.
Fixture and fitting:
• When an office business would need telephone to communicate with other