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 • 899 views

This phrase is correct and commonly used in English.

"operating costs"

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.

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In 2006 PP recorded around PLN 147 million as other operating costs.
'Other operating costs' are allocated proportionally to already allocated cost of services.
Organisations' ongoing operating costs are not eligible
NLB's operating costs amounted to EUR 368 million in 2012 at group level.
The price of fuel has a considerable impact on operating costs.
The subsidy granted to selected projects is limited to 30 % of operating costs.
It shall not include subsidies to inputs or operating costs, or preferential user charges.
Evan, endowments cover operating costs, salaries.
This has added to operating costs.
Moreover, operating costs of the infrastructure will be shared with the army.
Evaluation of construction and operating costs.
Despite rather stable passenger numbers, the airport is not able to cover its operating costs.
The salary costs of personnel of national administrations shall not be considered to be eligible operating costs.
At present banks are spending a third of their operating costs on payments.
It is important to specify how operating costs should be funded.
Furthermore, unlike classic guarantees, PPAs cover the beneficiaries' operating costs.
Users of these vehicles are very sensitive to the overall ownership and operating costs, central to which is fuel efficiency.
The subsidy thus relieves them of expenses which are part of their normal operating costs.
Category 2: Infrastructure and operating costs
The Commission notes that PBB intends to reduce its operating costs considerably.

Alternatives:

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

This phrase is correct and commonly used in English.

"operational costs"

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.

Show examples from the web [+]

CGD will continue that optimization effort by further reducing operational costs during the restructuring period.
Services and operational costs can be supported by the Marco Polo programme.
Cost efficiency means keeping down the operational costs to both the Eurosystem and its counterparties.
The Group should offer its customers only plain vanilla products, except for a new structured product like [...] (without guaranteed capital) for which the risks are confined to its syndication and related operational costs.
I am equally concerned about the operational costs.
This arrangement has guaranteed reasonable operational costs, even at airports with little traffic located in remote districts.
Table 7 provides a brief overview of increases and decreases with regards to operational costs.
additional operational costs, including salaries of staff specifically implementing the special transit scheme.
The non-euro area NCBs are required to pay up 7 % of their subscribed capital as a contribution to the operational costs of the ECB.
partial covering of operational costs during the first years.
The premium charged in respect of Spkef was 95 basis points (bp) to cover prepayment risk, operational costs and excess credit losses.
The substantial increase in oil prices is having a strong impact on fishermen's operational costs, and this caused their revenue to fall between 2008 and 2010.
The operational costs should be funded by the Community, industry and other public and private legal entities participating in the activities.
Increases and reductions with regard to foreseen operational costs (DKK p/a)
Since the project is meant to be self sustainable, the profits must cover all operational costs.
Common operational costs such as salary, housing (heating and electricity) and administrative costs are divided among the categories according to a cost allocation model [17].
This appropriation is intended to cover the operational costs of the FCH 2 JU.
The helicopter crews and other operational costs of the Greek National First Aid Centre (EKAB) have never been financed under the European Union's Community Support Framework for Greece.
Associated Partners shall contribute in the same manner as Members other than the Union to the IMI2 Joint Undertaking's operational costs, in accordance with Article 13 of these Statutes.
If part of the contribution for administrative costs is not used, it may be made available to cover the operational costs of the S2R Joint Undertaking.

Alternatives:

operating expenses
business costs
production expenses
management costs
administrative expenses

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operating costs vs operational costs

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