operational cost

USAGE SUMMARY

The phrase "operational cost" is correct and usable in written English.
It can be used when discussing the expenses associated with running a business or organization, particularly in relation to its operations. Example: "The operational cost of maintaining the equipment has increased significantly this year."

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Mobile operators can reduce operational cost in the mobile backhaul areas.

EURASIP Journal on Wireless Communications and Networking

Optimization of air route network can significantly reduce operational cost while ensuring operation safety.

Chinese Journal of Aeronautics

Costing started with the estimation of the operational cost of the operating theatres of our study hospitals.

BMJ Open

And the lease arrangement lets the customer treat software as a monthly operational cost rather than as a capital purchase.

The New York Times

The operational cost – on land and sea – is estimated at €950,000 ($1.1m), not including the scientists' salaries.

The Guardian

The operational cost review being undertaken by TfL aims to save money as well as ensuring that services remain unaffected".

The Guardian

In Spain, as in many countries, the operational cost of having a separate entity to investigate doping charges is prohibitive.

The New York Times - Sports

The company said it had identified $100 million in operational cost savings and $25 million in additional one-time savings.

The New York Times

operational cost.

Renewables: Wind, Water, and Solar

Some that are around operational cost savings.

Forbes

"Verification is a major operational cost," he adds.

TechCrunch

Expert writing Tips

Best practice

When discussing strategies to improve efficiency, explicitly state how the proposed changes will impact the "operational cost". For example, quantify the expected savings in percentage or monetary terms.

Common error

Avoid including capital expenditures (like purchasing new equipment) when discussing "operational cost". Operational costs are recurring expenses for running day-to-day activities, not one-time investments.

Linguistic Context

The phrase "operational cost" functions primarily as a noun phrase, serving to identify and categorize expenses associated with running or operating a business, system, or project. As shown in Ludwig, this term is frequently used in business, scientific, and news contexts.

Expression frequency: Very common

Frequent in

Science

50%

News & Media

31%

Formal & Business

12%

Less common in

Wiki

3%

Encyclopedias

0%

Social Media

0%

Ludwig's WRAP-UP

The phrase "operational cost" is a commonly used and grammatically correct term referring to the expenses incurred in running a business or operation. As Ludwig AI confirms, it is used across various contexts, including science, news and media, and formal business settings. Understanding and managing "operational cost" is crucial for profitability and efficiency. Alternative phrases, such as "operating expenses" or "running costs", can be used interchangeably. Be mindful of distinguishing "operational cost" from capital expenditures to ensure accurate financial analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Cost of operations

This phrase is a more formal way of saying "operational cost" using slightly different phrasing.

Running expenses

This phrase is a more general term that encompasses all the costs associated with running a business or operation.

Expenditures for operation

This is a more formal and detailed way to describe "operational cost", highlighting the spending aspect.

Maintenance costs

This alternative specifically refers to the expenses related to maintaining equipment or facilities.

Operating budget

Focuses on the financial plan allocated for day-to-day operations.

Upkeep expenses

Emphasizes the costs associated with keeping something in good condition.

Overhead costs

Refers to indirect expenses required to run a business.

Sustaining costs

Focuses on the expenses necessary to keep an operation or business viable.

Cost to run

This is a simplified and more informal way to refer to the expense of running something.

Business expenses

A very broad term encompassing all expenses incurred by a business, including operational costs.

FAQs

What's the difference between "operational cost" and "operating expense"?

The terms "operational cost" and "operating expense" are often used interchangeably. They both refer to the expenses incurred during the normal day-to-day activities of running a business or system. Some may consider "operating expense" a slightly broader term.

How can I reduce my company's "operational cost"?

Strategies for reducing "operational cost" include streamlining processes, negotiating better deals with suppliers, reducing energy consumption, automating tasks, and outsourcing non-core activities.

What are some examples of "operational cost"?

Examples of "operational cost" include salaries, rent, utilities, maintenance, marketing, and the cost of goods sold.

What's the relationship between "operational cost" and profitability?

A lower "operational cost" directly contributes to higher profitability, assuming revenue remains constant. Efficiently managing and minimizing these costs is essential for improving the bottom line.