Just a few general business questions: Sp, for a certain project, I have startup

Question

Just a few general business questions: Sp, for a certain project, I have startup costs, I have monthly costs like rent and electricity, I have variables costs based on the materials I use to produce, but what do I call mid-development costs that I use to increase the cash flow? Like for instance, if during the second fiscal quarter of starting a company I run an add, and the add servers no other purpose than the increase the cash flow, what kind of expense is that called?

Another is: How exactly do you find out or estimate how many sales you get for just a random kind of product? What would I research? What information would I look for?

Explanation / Answer

Mid-development Costs:

Costs can be revenue or capital. Revenue costs are categorised as fixed and variable. Capital Costs are costs which are incurred to increase the cash flows in future.

Here mid development costs are incurred to increase the cash flow. Hence these costs can be called as capitalised costs.

Estimation of Sales:

In order to estimate the sales regarding a particular product, the following should be researched and collect information:

1) Market size for the product

2) Market demand for the product

3) Purchasing ability of the customers

4) Substitutes for the product

5) Price of the product

6) Competition in the market

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