Operating Costs

Operating costs are the ongoing expenses a business incurs to run its daily operations. These costs include items like rent, utilities, salaries, and supplies needed for production or service delivery. As opposed to one-time expenses (like purchasing equipment), operating costs recur regularly and are essential for maintaining business activities. Understanding these costs is crucial for businesses to manage their budgets effectively, set prices, and ensure profitability. Keeping operating costs in check can help a business stay competitive and avoid financial difficulties.