What are operating costs of a business?

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What balances are normally included in the operating costs? Would you say that the balances that are usually included in the operating costs can change from company to company based on the accounting policies?

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score 0 · Answer 1 · 2012-12-02T20:53:03+00:00

The operating costs are the costs that a company incurs in its day to day operations apart from the purchases It makes to buy stock and the direct expenses (and some indirect) to turn the stock into products that it can sell. For example, payroll, electricity, insurance and other similar costs are operating costs.