What are the operating costs?

Operating costs include main business costs and other business costs. Among them, the main business cost is mainly used to calculate the actual costs incurred due to daily activities such as selling goods, transferring the right to use assets, and providing services. Other business costs are mainly used to calculate the expenses incurred by other sales businesses except the main business costs. Operating cost, also known as operating cost, refers to a series of expenses incurred by enterprises in the process of selling goods or providing services.

The operating costs of goods and services are composed of production and operation costs. The composition of product production cost of industrial enterprises mainly includes:

1. Direct materials: Direct materials include raw materials, auxiliary materials, spare parts, outsourced semi-finished products, fuels, power, packaging and other direct materials that are actually consumed in the production and operation of enterprises and directly used in product production.

2. Direct wages: Direct wages include wages, bonuses, allowances and subsidies of employees directly engaged in product production.

3. Other direct expenses: Other direct expenses include employee welfare expenses of personnel directly engaged in product production.

4. Manufacturing expenses: Enterprises can make appropriate adjustments to the cost structure according to their own needs.