operatiivkulusid

Operatiivkulusid, often translated as operating expenses or operational costs, refers to the ongoing costs incurred by a business in its normal course of operations. These expenses are essential for the day-to-day functioning and revenue generation of a company. They are distinct from capital expenditures, which are investments in long-term assets.

Common examples of operatiivkulusid include salaries and wages for employees, rent for office or retail space, utility bills such as electricity and water, marketing and advertising costs, raw material purchases for manufacturing, and administrative expenses like office supplies and insurance. These costs are typically recognized on the income statement in the period they are incurred.

Understanding and managing operatiivkulusid is crucial for a company's profitability and financial health. By closely monitoring these expenses, businesses can identify areas for cost savings, improve efficiency, and make informed decisions about pricing and resource allocation. A thorough analysis of operating costs helps in determining the break-even point and assessing the overall financial performance of the enterprise. Effective control over operatiivkulusid is a key indicator of good financial management.