Interesting. The purpose of running these calculations is to figure out how we should be pricing our service, and additionally, finding the point at which we will break even. I am in the US. I did not consider the tax implications of using different accounting methods. Thanks for the response.
Update: I have been told that I can represent these one time costs as capital put into the business that will depreciate, or as a business loan with interest. However, I am still not sure how I would represent this in a cost function. Since I am paying all of these expenses out of pocket, it...
Homework Statement
Trying to determine appropriate cost function for my start up. Usually total cost= fixed costs + per unit cost* Q.
However, it is usually assumed your fixed costs are monthly recurring costs, like rent, utilities, etc. Many of the costs we face are one time development costs...