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operating costs vs operational costs

Both 'operating costs' and 'operational costs' are correct and commonly used in English. They refer to the expenses incurred in the normal course of business operations. The choice between the two may depend on the specific context or personal preference.

Last updated: March 29, 2024

operating costs

This phrase is correct and commonly used in English.

This term refers to the expenses associated with running a business or operating a machine. It includes costs like wages, utilities, and maintenance.

Examples:

  • The company needs to reduce its operating costs to improve profitability.
  • We have to carefully monitor our operating costs to stay within budget.
  • Operating costs have been steadily increasing over the past year.
  • The operating costs of the factory are too high.
  • Cutting down on operating costs is essential for the business to survive.

Alternatives:

  • operational expenses
  • running costs
  • day-to-day costs
  • business expenses
  • production costs

operational costs

This phrase is correct and commonly used in English.

This term also refers to the expenses related to the operation of a business or a system. It encompasses costs like labor, materials, and overhead.

Examples:

  • The operational costs of the project are higher than anticipated.
  • We need to find ways to reduce our operational costs.
  • Operational costs can be a significant factor in determining the success of a business.
  • The company is facing challenges in managing its operational costs.
  • Understanding operational costs is crucial for effective financial planning.

Alternatives:

  • operating expenses
  • business costs
  • production expenses
  • management costs
  • administrative expenses

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