Expenses associated with administering a business on a day to day basis. Operating costs include both fixed costs and variable costs. Fixed costs, such as overhead, remain the same regardless of the number of products produced; variable costs, such as materials, can vary according to how much product is produced.
Businesses have to keep track of both operating costs and costs associated with non-operating activities, such as interest expenses on a loan. Both costs are accounted for differently in a company's books, allowing analysts to see how costs are associated with revenue-generating activities and whether or not the business can be run more efficiently.
Investment dictionary. Academic. 2012.
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Operating cost — Operating costs can be described as the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. Business operating costs For a commercial enterprise, operating costs… … Wikipedia
operating cost — ➔ cost1 * * * operating cost UK US noun [C, usually plural] ACCOUNTING ► (also operating expense) a cost relating to producing a company s goods or services: cut/increase/reduce operating costs »The company plans to cut operating costs by £1.2bn… … Financial and business terms
operating cost — veiklos sąnaudos statusas T sritis Gynyba apibrėžtis Turto sąnaudos, būtinos įrangai veikti ar veiklai vykdyti. atitikmenys: angl. operating cost ryšiai: susijęs terminas – veiklos ir eksploatavimo sąnaudos susijęs terminas – veiklos lėšos… … Lithuanian dictionary (lietuvių žodynas)
operating cost — noun the expense of maintaining property (e.g., paying property taxes and utilities and insurance); it does not include depreciation or the cost of financing or income taxes (Freq. 2) • Syn: ↑operating expense, ↑overhead, ↑budget items • Topics:… … Useful english dictionary
standard operating cost — The total of all the standard cost allowances for the actual level of activity achieved by an organization … Accounting dictionary
standard operating cost — The total of all the standard cost allowances for the actual level of activity achieved by an organization … Big dictionary of business and management
Operating expense — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
cost — The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to… … Financial and business terms
operating expense — all the expenses normally incurred in running a business, during an accounting period, excluding the cost of goods sold. Glossary of Business Terms * * * operating expense operating expense ➔ expense * * * operating expense UK US noun ACCOUNTING… … Financial and business terms
cost per available seat mile — noun The unit operating cost of a carrier, also known as unit cost. The cost, expressed in cents to operate each seat mile offered. Determined by dividing operating costs by ASM (available seat miles) … Wiktionary