A-Z Popular Blog Costs Search »
Business Costs
Business Costs
Business Expenses

31 Examples of an Operating Cost

Operating costs are the core expenses of an organization that are often ongoing or repeated. This includes overhead known as selling, general and administrative expenses (SG&A). Operating costs can also include cost of goods sold. This would certainly qualify as a core expense of an organization but is sometimes separated out for purposes of analysis and reporting. The following are common operating costs.
Bad Debt Expense
Bank Charges
Cost of Goods Sold†
Employee Benefits
Equipment Rental
Executive Compensation
General & Administrative Expense
Legal Fees
Licensing Fees
Management Fees
Management Salaries
Meals & Entertainment
Office Expenses
Office Supplies
Professional Fees
Repairs & Maintenance
Salaries & Wages
Sales Commissions
Selling Expenses
Software Licenses
Tools & Equipment††
Vehicle Expenses


Cost of goods sold is conceptually an operating cost but may be separated out for the purposes of analysis and reporting.
†† Minor purchases of tools, equipment and computing devices that are below your capitalization limit.
Operating costs are reported as operating expenses on an income statement.
Costs of goods sold includes anything that can be directly attributed to the cost of each unit of a product or service that was actually sold. For example, some wages will be includes in costs of goods sold while others may be included in general and administrative expenses. Care must be taken to avoid counting any cost twice.
Operating costs are interpreted according to the nature of your business and will differ from one industry to the next.
Overview: Operating Cost
The core expenses of an organization that are often ongoing or repeated.
Similar Terms
Related Concepts

Business Costs

This is the complete list of articles we have written about business costs.
Applied Cost
Business Equipment
Capacity Cost
Capital Improvement
Carrying Costs
Closing Costs
Cost Of Capital
Cost Of Revenue
Cost Of Living
Direct Cost
Distress Cost
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Marginal Cost
Operating Cost
Operating Expenses
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Normal Costs
Sunk Costs
Tangible Cost
Operational Costs
Travel Expenses
Unit Cost
Opportunity Cost
Variable Costs
Prospective Cost
Semi Variable Cost
Step Costs
Switching Costs
Transaction Costs
If you enjoyed this page, please consider bookmarking Simplicable.

Capital Expenditures

The definition of capital expenditure with examples.

Capital Improvement

The common types of capital improvement with a comparison chart.

Fixed Expenses

A list of common fixed expenses including business and personal examples.

Examples of Current Assets

A list of the common types of current asset.

Cost Strategy

The basic types of cost strategy with examples.

Business Travel

Common purposes for business travel.

Administrative Costs

An overview of administrative costs with examples.

Work Complexity

A list of things that influence work complexity.

Friction Cost

An overview of friction cost with examples.

Business Supplies

Lists of various types of business supplies.

Business Expenses

A list of common types of business expenses.

Travel Expenses

A list of common travel expenses.

Cost vs Expense

The difference between cost and expense.


The definition of expense with examples.

Variable Expenses

A list of common variable expenses including business and personal examples.

Operating Expenses

An a-z list of common operating expenses.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map