Operating Costs in Accounting

Manishkumar Shrivastav
2 min readMar 23, 2022

Operating costs in accounting are the charges that are related to the operation of a business, or to the operation of a device, element, piece of outfit or installation. They’re the cost of coffers used by an association just to maintain its actuality.

Services performed may be internal or external. Services are nominated as internal where they have to be performed on an inter-departmental base in the plant itself, e.g. supplying power, gas or electricity from the plant’s own powerhouse, feeding on the plant’s canteen; supplying. brume raised from the boiler house, repairing necessary particulars by the form and conservation. department etc. Services are nominated as external when they’ve to be handed to outside parties. Such enterprises are service undertakings e.g. transport pots carrying loads of goods or mortal beings; electricity companies generating electricity or power; hospitals serving cases or carrying out operations; canteens serving refections or dishes of different kinds etc. The system employed to find out the cost of rendering a service, either internal or external, is service going or, so to say, operating going.

Operating Costs in Accounting

The Chartered Institute of Management Accountants, London defines” operating cost” as ” the cost of furnishing a service.”
Operating going is just a variant of unit or affair going.

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Manishkumar Shrivastav
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