Organization Expense (Noun)
Meaning
The cost (over a period of five years) of organizing a new corporation or partnership.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The new company's organization expense over the last five years has exceeded the initial projections due to unforeseen regulatory hurdles.
- As part of the financial planning, setting aside funds for organization expense is essential to ensure a smooth startup process for the partnership.
- An accounting rule stipulates that organization expense should be recorded as an intangible asset and amortized over its useful life.
- Business owners must keep track of all organization expense for tax purposes as these costs may be eligible for deduction.
- Calculating the organization expense accurately can significantly impact the company's balance sheet and ultimate profitability.