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ORGANIZATION COST is amounts spent to begin a business entity, e.g., business filing fees, franchise acquisition, and legal fees. In the United States, costs associated with a corporation issuing or selling shares or other securities are capitalized and not tax deductible. Other organization expenses may be capitalized and amortized over a period of sixty (60) months or more; thereby providing possible tax relief through organization cost deductions. See also STARTUP COSTS.
NETBACK is linkage of the price of crude oil to the market price of products refined from it.
COST REDUCTION is actions taken in the present designed to decrease costs in the present. See COST AVOIDANCE.
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