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hello and welcome to the session in which we would look at startup cost as well as initial operating laws we will define them and see how we treat them for accounting purposes and very briefly about tax purposes however this is not a tax course this is intermediate accounting so if you are looking to learn about these topics from a tax perspective please go to foreheadlectures.com so what are startup costs startup costs are one-time activities to start a new operation activities mean some expenditure that you are incurring what could be some examples of this well it could be youre opening a new plant youre introducing a new product or service you might be expanding in into a new territory what happened when these when these events occur you might incur travel cost employee salaries certain accounting costs training costs computer system and other costs that are that are related to this one-time activity so what do we have to do with these costs well were going to find out shortly i