Operating Cost
/ˈɒpəreɪtɪŋ kɒst/
Definitions
- (n.) The expenses directly associated with the day-to-day functions of running a business, property, or project, considered in legal contracts and financial disclosures.
The lease agreement specifies that the tenant is responsible for all operating costs incurred during tenancy.
Forms
- operating cost
Related terms
See also
Commentary
In legal contexts, defining operating costs precisely in contracts is crucial to avoid disputes over financial responsibilities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.