Imagine what kind of business that you would like to open, and post this as part of your message.

Now, identify the business that is going to open:

List and describe the costs that would be involved. There is no need to provide amounts. Just list the costs and describe them if and as necessary to clarify your plan. This is about applying the concepts.

Type of Cost	Description of Cost	Fixed?	Variable?
Product costs:
Direct materials
Direct labor
Manufacturing Overhead
Period Costs:
Selling
Administrative

What sunk costs are relevant to your company? Why are these sunk? If none are relevant, why arent any sunk costs applicable to your business?

What opportunity costs would you consider when deciding to open your business?