käyttökustannus

Käyttökustannus is a Finnish term that translates to "operating cost" or "running cost" in English. It refers to the expenses incurred in the day-to-day operation of a business, service, or asset. These costs are distinct from initial investment or capital costs, which are one-time expenditures made to acquire or build something.

Operating costs encompass a wide range of expenditures. For a business, these can include salaries and wages for employees, rent for office or retail space, utilities such as electricity and water, marketing and advertising expenses, raw materials or inventory, maintenance and repairs, insurance, and administrative overhead. For a physical asset, such as a vehicle or machinery, operating costs might include fuel, lubricants, routine maintenance, repairs, insurance, and registration fees.

Understanding and managing operating costs is crucial for profitability and sustainability. Businesses track these expenses to assess their efficiency, identify areas for cost reduction, and set appropriate pricing for their products or services. Analyzing operating costs helps in budgeting, financial forecasting, and making informed decisions about resource allocation. Comparing operating costs to revenue generated is a key metric for evaluating the financial performance of any entity. Effective management of these ongoing expenses is a cornerstone of sound financial practice.