Operational Cost
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An Operational Cost is an organizational expense incurred to maintain its day-to-day operations.
- Context:
- It can range from being a Historical Operational Cost to being a Estimated Operational Cost.
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- Example(s):
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- See: Expense.
References
2023
- chat
- Q: What is an operational cost? Provide examples.
- A: An operational cost refers to the expenses that a company incurs in order to maintain its day-to-day operations, such as producing and selling its products or services. These costs are separate from capital expenditures, which are one-time costs for long-term investments in equipment, facilities, or other assets. Examples of operational costs include:
- Employee salaries and benefits
- Raw materials and supplies
- Rent and utilities for facilities
- Transportation and shipping costs
- Marketing and advertising expenses
- Equipment maintenance and repairs
- Legal and professional fees
- Insurance premiums
- Taxes and other regulatory fees.
2023
- (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Operating_cost Retrieved:2023-2-7.
- Operating costs or 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.