Operating cost

Operating (Operational) costs are the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. They are the cost of resources used by an organization just to maintain its existence.

For a commercial enterprise, operating costs fall into three broad categories:

Overhead costs for a business are the cost of resources used by an organization just to maintain its existence. Overhead costs are usually measured in monetary terms, but non-monetary overhead is possible in the form of time required to accomplish tasks.

Examples of overhead costs include:

Non-overhead costs are incremental such as the cost of raw materials used in the goods a business sells.

Operating Cost is calculated by Cost of goods sold + Operating Expenses. Operating Expenses consist of :

This page was last edited on 9 June 2018, at 23:56 (UTC).
Reference: https://en.wikipedia.org/wiki/Operational_costs under CC BY-SA license.

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