Operational Cost

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An Operational Cost is an organizational expense incurred to maintain its day-to-day operations.



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.