Cost of operation

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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 University Press & Assessment. https://dictionary.cambridge.org/us/dictionary/english/operating-cost.
2. ↑ Clark, J. Maurice (1923). "Overhead costs in modern industry". Journal of Political Economy 51 (5): 606–636. doi:10.1086/253551.

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