Operating Cost

Operating cost is the day-to-day cost of running a business, which include cost of goods sold (COGS) along with all operating expenses such as: maintenance, administration, rent, payroll, overhead costs, sales, and marketing.

It should be noted that operating cost differs from operating expenditure (OpEx). When calculating operating cost, COGS is included, however operating expenditure does not include COGS.

To calculate operating cost, simply add your COGS with all of your business’ daily operating expenses, including, but not limited to those listed above.

Operating cost = Cost of goods sold + Operating expenses