Operating costs can be described as the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility.
[edit] Business operating costs ...
Operating Costs
In addition to Ownership Costs, a taxpayer is allowed Operating Costs, by regional and metropolitan area, as shown in the table below. For each automobile, taxpayers will be allowed the lesser of: ...
Operating costs - Expenditures arising out of current business activities.
Operating loan - A loan from a financial institution to a business intended to cover daily operating expenses.
Operating costs/operating expenses
The day-to-day expenses involved in running a business; eg. sales and administration costs.
Operating profit ...
Operating Costs The day-to-day expenses of running a business.
Operating Leverage Amount of fixed operating costs.
Fixed operating costs, so-called because they accentuate variations in profits. ...
Operating Cost
Expenses associated with administering a business on a day to day basis. Operating costs include both fixed costs and variable costs.
Pre-operating costs are expenditures made in a period that precedes operation, to establish a business. These costs may be deferred in limited circumstances.
Prepaid expenses ...
Fixed operating costs, which are characterized as leverage because they accentuate variations in profits.
Operating profit (or loss)
Revenue from a firm's regular activities less costs and expenses and before income deductions.
property operating costs that increase with occupancy.
Example: The management fee , at 5% of actual rent collections, and trash removal, at $10 per month per occupied apartment unit, are variable expenses.
...
Fixed Cost: Operating cost which does not vary per unit of output.
Fixed Exchange Rate: Foreign exchange rate set and maintained by government support.
Fixed Rate: An interest rate that is fixed for a defined period.
Economies of vertical integration Produced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting with companies in the outside marketplace.
S,G & A Overheads or administrative overheads; usually the most important element of operating costs; largely fixed costs with some variable elements.... SAC Subscriber acquisition cost.
Operating leverage Fixed operating costs, which are characterized as leverage because they accentuate variations in profits.
This management style may have lower operating costs (expense ratio) due to less active trading. See Active Portfolio Management. payable date The date when dividends or capital gains are paid to shareholders.
operating costs The day-to-day expenses that a firm must incur. Also known as operating expenses. operating cycle The average time between purchasing or acquiring inventory and receiving cash proceeds from its sale.
A company's profit after deducting its operating costs from gross profit....(Read more)
Opportunity Cost
In general, the
cost of an alternative that must be forgone in order to pursue a certain action, or the benefits you could have received by..
Operating leverage Fixed operating costs, so-called because they accentuate variations in profits. Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage.
(i) Economic exposure: operating costs will rise due to changes in rates and make a product uncompetitive in the world market. Little can be done to reduce this routine business risk that every enterprise must endure.
The amount by which a producer's income exceeds total operating costs, including the cost of capital provided by the firm's owners.
It is calculated as 25 per cent of a taxpayer's annual resource profits, computed after operating costs and capital cost allowances, but before the deduction of exploration expenses, development expenses, earned depletion and interest expenses.
To illustrate, assume Flynn Flying Service currently has a jet with a fixed operating cost of $3,000,000 per year, and a contribution margin of 30%.
One of the challenges that portfolio managers face in providing stronger-than-benchmark returns is that their funds' performance needs to compensate for their operating costs.
A final benefit is that the scoring method lowers operating costs for businesses which, in turn, means customers face lower lending rates.
what's a good score?
In general, scores range from 330 to 830. The higher your score the better.
Historically most sulfide nickel ore bodies have had grades of 1% to 2% Ni, mined underground at relatively low production rates and with high operating costs.
Variable cost also known as, operating costs, prime costs, on costs and direct costs, are costs which vary directly with the level of output, for example, labor, fuel, power and cost of raw material.
These are the current operating costs of running your business. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business, trade, or profession.
You have to take into account the current operating costs and long-term financial obligations of the company. The liabilities will be listed on the balance sheet by subject, giving you a good idea of the amount of debt the company has.
Expense Ratio - This represents the percentage of a company's net premiums written that went toward underwriting expenses, such as commissions to agents and brokers, state and municipal taxes, salaries, employee benefits and other operating costs.
Operating Leverage The ability to magnify profits from increases in sales due to a firm's operating costs being largely fixed than variable.
If you use the standard mileage rate (SMR) method, you calculate the fixed and operating costs of your vehicle by multiplying the number of business miles traveled during the year by the business standard mileage rate.
Operating leverage, a measure of operating risk, refers to the fixed operating costs found in the firm's income statement.
Produced by achieving lower operating costs by owning all components ofproduction and sometimes sales outlets rather than contracting for companies in theoutside marketplace.
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Personal Finance Glossary ...
The landlord's right to pass increased operating costs in the building on to the tenant without limitation
The tenant's obligation to pay any increased taxes as a result of the landlord's selling the building ...
Gross Lease
Rental in which the lessor pays all operating costs such as taxes, utilities, insurance and maintenance, in addition to the rent.
Gross Margin
Percentage produced when gross profits are divided by total income.
The rent paid to the landlord before charges for taxes and operating costs. In effect, this is the rent being paid for "the space" as opposed to municipal taxes or building services.
Rent (Net Effective) (NER) (Real Estate): ...
Annual Subaccount Fee (similar to annual fees)
A fee deducted for fund operating costs, management fees, and other asset-based costs incurred by the fund. This charge is assessed at the subaccount level and is not deducted from policy values.
Working Ratio - A ratio used to measure a company's ability to recover operating costs from annual revenue.
BASE YEAR - The year in a lease term used as a standard in a rent escalation clause. Operating costs in the next year are compared with costs in the base year, and tenant's rent is adjusted either up or down.
Fixed operating costs provide capacity to carry on
operations and make sales. Fixed manufacturing overhead costs provide
production capacity. Fixed expenses are a key pivot point for the analysis ...
In many cases, the event itself will cost money to run and the donations must cover not only operating costs, but also create a donation. If the event is not run properly, organizers risk the ability to run future events.
It is a managerial accounting activity designed to help managers identify, measure, and control operating costs. It is used most often in a manufacturing environment.
Cost of goods sold
Cost Of Goods Sold ...
Economies of Vertical Integration - Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace.
This market is often used by businesses when they need short-term funds to bridge the gap between paying operating costs and collecting revenue from product sales.
Because federal and state regulations invariably follow government funds, subsidies also increase operating costs.
This charge typically recovers the tenant's proportionate share of building costs such as realty taxes, operating costs, and electricity (if not metered separately).
Operating Profit Or Loss
Before tax profit (loss) that a corporation earns from operations after all operating costs have been deducted.
See: Operating Profit Margin ...
The value of a mutual fund determined by subtracting its total liabilities (such as management and operating costs) from its total assets.
Net asset value (NAV). This is the price at which mutual fund shares are bought and sold by investors.
found that acts of corporate social responsibility (CSR) can have financial benefits, such as increased product differentiation that can appeal to consumers, for example fair trade or organic goods. They may also experience decreased operating costs.
Operating Differential Subsidy
ODS is a payment which the U.S. government makes to vessels carrying the American flag to offset the difference in operating costs between U.S. and foreign carriers.
Net assets. The value of a mutual fund determined by subtracting its total liabilities (such as management and operating costs) from its total assets.
UNIT INVESTMENT TRUST: An unmanaged form of investment company, typically holding fixed-income securities, offering investors diversification and minimum operating costs.
In a financially sustainable institution, this spread is large enough to cover operating costs, the opportunity cost of holding liquid reserves that earn no or low interest, losses in the value of the institution's assets due to inflation, ...
Gross-revenue pledge: In a municipal revenue bond, a trust-indenture provision stipulating that the revenues first go to pay the debt servicing costs. The operating costs may be paid from some other source of revenues.
That's a huge difference right there and it tells us that the marketing/administration costs of software companies is huge! However, this also tells us that operating costs and cost of goods sold of software companies is relatively low.
Second, free conference call services require very little in the way of equipment and personnel. This means a very low operating cost that can easily be covered by consistent usage of their facilities.
For example, no-load mutual funds ordered by annual operating costs from lowest (best) to highest (worst), dividend-paying stocks ordered by dividend yield from highest (best) to lowest (worst), ...
The Berry ratio is the ratio of a business' gross income to operating costs.
BEST METHOD RULE -- Transfer pricing rule requiring that a taxpayer use the transfer pricing method that results in the most reliable measure of an arm's length price.
and must operate in a very prudent manner like other financial institutions. Quite often, a credit union will be more competitive than a traditional bank or savings and loan institution because its non-profit status lowers its operating costs.
Expense ratio Operating costs, including management fees, expressed as a percentage of a fund's average net assets for a given time period. Extra A dividend that is paid in addition to a firm's 'regular' quarterly dividend.
 See also: Operating costs, Expense, Banks, Funding, Expected return
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