Operating Cost Definition

Below please find a definition of “Operating Cost”

Financial Analysis Training & Glossary TermsOperating 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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