ClosureCost

Closure cost refers to the expenses incurred when a business or organization stops its operations. This can include costs such as settling debts, paying severance to employees, and disposing of assets. Additionally, it might involve legal fees, environmental cleanup, and any expenses related to shutting down facilities. Understanding closure costs is essential for businesses to plan effectively and manage their financial health, ensuring that they can address all responsibilities before winding down their activities. It emphasizes the need to prepare for potential closure in advance, rather than reacting only when the situation arises.