Operating Costs
/ˈɒpəreɪtɪŋ kɒsts/
Definitions
- (n.) Expenses associated with the day-to-day functioning of a business or property, including labor, materials, utilities, and maintenance.
The company reduced its operating costs to improve profitability.
Related terms
Commentary
In legal agreements, clearly defining operating costs can affect liability and payment obligations, so precise enumeration of included items is recommended.
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.