Cost of operation

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The '''cost of operation''' refers to the total expenses incurred in running a company or a specific business activity in its normal operations.<ref>{{cite web |title=operating cost definition |url=https://dictionary.cambridge.org/us/dictionary/english/operating-cost |website=Cambridge English Dictionary |publisher=Cambridge University Press & Assessment |access-date=17 February 2025}}</ref> It includes both fixed costs, such as rent, salaries, and insurance, and variable costs, such as raw materials, utilities, and production expenses.<ref>{{cite journal |last1=Clark |first1=J. Maurice |title=Overhead costs in modern industry |journal=Journal of Political Economy |date=1923 |volume=51 |issue=5 |pages=606–636 |doi=10.1086/253551 }}</ref>

==See also== * Operating cost * Operations management * Loss leader

==References== {{Reflist}}

Category:Strategic management

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