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

• Operating cost
• Operations management
• Loss leader

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. doi:10.1086/253551.