Business Costsoperating costs
Running costs are the costs associated with the running of a business or the running of an appliance, constituent, item of plant or installation. These are the costs of ressources that are used by a company only to sustain its being. There are three main types of running costs for a trading company: those which vary according to whether more is produced and how it is done (the manufacture of 100 products can take 10 ordinary working day or 7 extra working days).
Floating costs comprise indirectly incurred overheads such as mobile telephony services, computer equipment, credit card processing, electricity consumption, express mail, household appliances, MRO, office supplies, payroll, telecommunications, uniforms, utilities or waste disposal, etc. Half variables are the costs necessary to keep the business in good shape. Overheads for an enterprise are the costs of allocating natural or legal capital to an enterprise solely to support its survival.
Overheads are usually expressed in money, but non-monetary overheads are possible in the shape of expenditure of time to perform work. Among other things, the following are typical indirect costs: General costs are increasing, such as the costs of commodities used in the goods that a company is selling. The running costs are determined from the costs of the products purchased + running costs.
Running costs shall be : : Administration and bureau costs such as rental, wages, staff, insurances, directors' charges, etc. Sales and marketing costs such as advertising, seller wages. Contains all running costs such as wages, rental, stationery, furnishings, etc. As regards a fixture, components, equipment or installation (for the remainder of this item, all such articles are generally designated as equipment), it shall be the periodic, normal and recurrent costs of operation of the same.
Not included are the investment costs for the construction or purchase of the plant (depending on whether it was manufactured by the owners or bought as a designed plant). Operational costs are associated with all devices - unless the devices have no operational costs, require no staff or room and never wear out.
In some cases it may appear that the operational costs are low or not at all, either because the costs are not covered or because all or part of the costs are covered by the costs of something else. The operational costs of the installation may cover the following: As an example, a home mounted module used for electricity generation usually has only principal costs; once in operation, there are no staff costs, operational costs or depreciations and it does not consume additional lands (which were not already part of the place where it is located) so that it has no actual operational costs; however, it may be necessary to take into consideration the costs of replacing in case of damage.
A car or other object bought for private use has no wage costs as the holder does not calculate himself for the operation of the equipment. Arguably, it may be doubtful to claim that the costs of ten additional persons in the field are additional costs, which are additional costs or overheads, since the salaries for these persons are both overheads and cremental salaries.
Personnel needed to keep the workshop in operation is usually regarded as OHP.