Operating cost

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Operating Costs are costs associated with business operations, or the operation of devices, components, equipment or facilities. They are the resource cost used by an organization just to maintain its existence.

Video Operating cost

Cost of business operations

For commercial enterprises, operating costs are divided into three broad categories:

fixed costs, which is the same whether the operation is closed or running at 100% capacity. Fixed costs include items such as building leases. This is generally to be paid regardless of what business conditions enter. Never changes
variable costs, which can increase depending on whether more production is being done, and how it is done (generating 100 items of products may require 10 days of normal time or take 7 days if overtime is used.May be more or less expensive to use production overtime depends on whether production is faster means the product can be more profitable). Variable costs include indirect overhead costs such as Cellular Phone Service, Computer Inventory, Credit Card Processing, Electricity Usage, Express Mail, Cleaning Supplies, MRO, Office Products, Payroll Services, Telecommunications, Uniforms, Utilities, or Waste Disposal, etc.
semi variables, the cost required to keep the business in the right conditions.

Maps Operating cost

Business overhead costs

The overhead cost for a business is the cost of resources used by an organization just to maintain its existence. Overhead costs are usually measured in monetary terms, but non-monetary overhead is possible in the form of time required to complete a task.

Examples of overhead costs include:

lease payments in office space occupied by business
power costs for office lights
some office salaries

Non-overhead costs are incremental such as the cost of raw materials used in goods sold by a business.

Operating Cost is calculated based on Cost of Sales of Operating Cost. Operational Costs consist of:

Administrative and office costs such as rent, salary, staff, insurance, directors fees, etc.
Sales and distribution costs such as advertising, salesman salaries.

This includes all operating costs such as salary, rent, stationery, furniture etc.

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Cost of operating equipment

In the case of devices, components, equipment or facilities (for the rest of this article, all of these items will be generally referred to as equipment ), it is a regular, regular and recurring recurring charge of operating the equipment. This does not include the capital cost of building or buying equipment (depending on whether it is made by the owner or purchased as a built system).

Operating costs are borne by all equipment - unless the equipment has no cost to operate, does not require personnel or space and is never obsolete. In some cases, the equipment may appear to have low or no operating costs because the costs are not recognized or absorbed in whole or in part by the cost of something else.

The cost of operating the equipment may include:

Salary or Wages of personnel
Ads
Raw materials
Licenses or equivalent fees (such as the Company's annual registration fee) imposed by the government
The cost of real estate, including
- Rent or Rent payment
- Rent office space
- furniture and appliances
- the investment value of the funds used to purchase the land, if owned instead of leased or rented
- property tax and equivalent ratings
- Operating tax, such as fees charged to transport operators for highway use
Fuel costs such as electricity for operations, fuel for production
Public utilities like phone service, Internet connectivity, etc.
Equipment maintenance
Office supplies and consumables
Insurance premium
Depreciation of equipment and final replacement cost (unless facility has no moving parts may wear out eventually)
Damage due to uninsured losses, accidents, sabotage, negligence, terrorism, and regular wear.
Tax on production or operation (such as the cost of land subsidence imposed on an oil well)
Income tax

Some of them do not apply in all instances. As an example,

Solar panels placed in one's home for use in generating electricity generally only have a capital cost; thereafter running no personnel fees, utility fees or depreciation and no use of additional land (which is not yet part of the place where it is located) so as to have no real operating costs; but may need to consider the replacement cost if damaged.
Cars or other items purchased for personal use have no salary costs because the owner does not charge for operating the device.
The leased item may have some or all of these costs included as part o

It may be questionable to state that the cost of ten additional people to the sales force is an additional fee or additional cost, because of the wages for these people both above and above. The staff required to maintain store operations is largely regarded as overhead.