Operating cost

by Richard C. Wilson on November 15, 2011

Below please find a definition of “Operating cost”

Financial Analysis Training & Glossary TermsDefined Term – Operating cost: The expenses that are related to the ongoing administration of a company are termed as operating costs. Operating costs are inclusive of both fixed costs and variable cost. A common example of fixed cost is overhead (e.g. rent, electricity, staff wages) and labor and materials are examples of variable costs since they vary depending on how much products are produced.

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