Term of the Day: Operating Cost

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	INVESTOPEDIA Term Of The Day October 1, 2015 Operating Cost Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis. The operating cost is a component of operating income and is usually reflected on a company's income statement. While operating costs generally do not include capital outlays, they can include many components of operating a business. The formula for operating cost can be expressed in the following way: Operating Cost = Cost of Goods Sold - Operating Expenses Breaking It Down: Businesses have to keep track of both operating costs and costs associated with non-operating activities... Read More Related to "Operating Cost" Warning Signs Of A Company In Trouble As a financial advisor, it is your fiduciary responsibility to keep an eye on your client's investments... Read More Operating Expenses An operating expense is any expenditure made for the purpose of operating... Read More 3 Startups Worth More Than a Billion Due to technology and the rise of private markets, startups reach billion dollar valuations early in their lives and without having to... Read More Recently Added Definitions Days Sales Outstanding - DSO A measure of the average number of days that a company takes to collect revenue after... Read More Principal-Agent Problem The principal-agent problem develops when a principal creates an environment in which... Read More Related Definitions Noninterest Expense Non-Core Item Profit and Loss Statement (P&L) Expense Interest Expense Past Terms of the Day Cost Of Funds Cost Accounting Capitalized Cost Dividend Payout Ratio Interest Coverage Ratio You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: