operating cost
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/ˈɑːpɚɹˌeɪɾɪŋ kˈɔst/
British pronunciation
/ˈɒpəɹˌeɪtɪŋ kˈɒst/

Definition & Meaning of "operating cost"

Operating cost
01

the ongoing expenses incurred in the daily functioning of a business or organization, including costs like rent, utilities, salaries, and maintenance

example
Example
click on words
The company 's operating costs increased due to rising utility prices.
Reducing operating costs was essential to improve the business's profit margins.
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