setup costs

Meanings

1. 1nounpluralbusinessfinance

   The one-time expenses required to start a new business, project, or system.

   Grammar: Always plural; the singular 'setup cost' is rare but possible when referring to a single item. Use with a plural verb: 'Setup costs are high.'

   Patterns

   • setup costs for something
   • high/low setup costs
   • cover/pay setup costs

   The setup costs for the new factory included equipment and permits.

   Before launching the app, they estimated setup costs at $50,000.

   High setup costs discouraged many small investors.

2. 2nounpluralbusinessfinance

   In accounting, the expenses recorded when a company begins operations, such as legal fees and registration.

   Grammar: Used in financial statements; often appears as 'start-up costs' in American English.

   Patterns

   • capitalize setup costs
   • amortize setup costs

   The accountant advised capitalizing the setup costs rather than expensing them immediately.

   Setup costs were amortized over five years.

Word forms

Common combinations

high setup costs

High setup costs prevented them from entering the market.

initial setup costs

The initial setup costs were covered by a loan.

reduce setup costs

Using cloud services can reduce setup costs.

setup costs for

What are the setup costs for a new franchise?

Synonyms and how they differ

start-up costs

More common in American English and often used for new businesses; 'setup costs' is broader and can apply to any project.

initial costs

Focuses on the beginning phase; 'setup costs' emphasizes the preparation needed to make something ready.

installation costs

Used specifically for equipment or software installation, while 'setup costs' can include fees, training, and configuration.

Opposites

Word family

set up phrasal verb

To arrange or establish something.

setup noun

The way something is organized or arranged.

Commonly confused: setup costs or set up?

Practice

Make it your own

Write a sentence using “setup costs”, then check it and compare it with the examples above.

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