Operating Cost

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Dictionary Says

Definition of 'Operating Cost'

Expenses associated with administering a business on a day to day basis. Operating costs include both fixed costs and variable costs. Fixed costs, such as overhead, remain the same regardless of the number of products produced; variable costs, such as materials, can vary according to how much product is produced.

Investopedia Says

Investopedia explains 'Operating Cost'

Businesses have to keep track of both operating costs and costs associated with non-operating activities, such as interest expenses on a loan. Both costs are accounted for differently in a company's books, allowing analysts to see how costs are associated with revenue-generating activities and whether or not the business can be run more efficiently.
Search results for

'Operating Cost'

  • DCF Analysis: Forecasting Free Cash Flows | Investopedia

    http://www.investopedia.com/university/dcf/dcf2.asp
    ... revenues. A good place to start when forecasting operating costs is to
    look at the company's historic operating cost margins. The ...

  • Analyzing Operating Margins

    http://www.investopedia.com/articles/stocks/08/operating-margins.asp
    ... When revenue increases, the operating margins of companies that are fixed-cost
    intensive have the potential to increase at a faster rate than less fixed-cost ...

  • Operating Leverage Captures Relationships

    http://www.investopedia.com/articles/stocks/06/opleverage.asp
    ... which are critical inputs for understanding operating leverage. It would be surprising
    if companies didn't have this kind of information on cost structure, but ...

  • Operating Performance Ratios: Operating Cycle | Investopedia

    http://www.investopedia.com/university/ratios/operating-performance/ratio3.asp
    ... are the same - receivables, inventory and payables - in the operating cycle, they ...
    Components: DIO is computed by: Dividing the cost of sales (income statement ...

  • CFA Level 1 Study Guide - Financial Ratios - Operating ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/operating-profitability-ratios.asp
    ... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components; 9.10
    Reporting The ... 9.16 Capital And Operating Leases; 9.17 Effects Of Capital Vs. ...

  • Investment Alternatives To Costco

    http://stocks.investopedia.com/stock-analysis/2011/Investment-Alternatives-To-Costco-COST-WMT-BBBY-SPLS-BBY1012.aspx
    ... Operating income growth was even stronger, rising 17.4% to $2.44 billion, as management
    was able to hold merchandise costs and operating SG&A cost below sales ...

  • CFA Level 1 Study Guide - Financial Ratios - Operating Efficiency ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/operating-efficiency-ratios.asp
    ... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components; 9.10
    Reporting The ... 9.16 Capital And Operating Leases; 9.17 Effects Of Capital Vs. ...

  • Are mutual fund performance numbers reported net of fees ...

    http://www.investopedia.com/ask/answers/07/mutual_fund_cost.asp
    The answer depends on how you define "operating expenses."Let's look at a cinematic
    metaphor to clear up this apparent ambiguity. A mutual fund's cost. ...

  • CFA Level 1 Study Guide - Corporate Finance - Operating Leverage ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/operating-leverage-effects.asp
    ... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components; 9.10
    Reporting The ... 9.16 Capital And Operating Leases; 9.17 Effects Of Capital Vs. ...

  • CFA Level 1 Study Guide - Liabilities - Capital And Operating ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/capital-operating-leases.asp
    ... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components; 9.10
    Reporting The ... 9.16 Capital And Operating Leases; 9.17 Effects Of Capital Vs. ...

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