Operational Cost
/ˌɒpəˈreɪʃənəl kɒst/
Definitions
- (n.) The expenditures incurred in the regular functioning and management of a business, often referenced in contracts and compliance regulations.
The company disclosed its operational costs in the financial report to comply with regulatory requirements.
Forms
- operational cost
- operational costs
Related terms
See also
Commentary
Operational cost typically excludes capital expenditures and focuses on recurring expenses; legal drafting should specify inclusion or exclusion of certain costs to avoid ambiguity.
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.