Cost of operation

The cost of operation refers to the total expenses incurred in running a company or a specific business activity in its normal operations.[1] It includes both fixed costs, such as rent, salaries, and insurance, and variable costs, such as raw materials, utilities, and production expenses.[2]

See also

References

  1. ^ "operating cost definition". Cambridge English Dictionary. Cambridge University Press & Assessment. Retrieved 17 February 2025.
  2. ^ Clark, J. Maurice (1923). "Overhead costs in modern industry". Journal of Political Economy. 51 (5): 606–636.


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