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Operating costs include variable costs,depreciation and interest charges.

2007-07-24 04:50:33 · 4 answers · asked by Anonymous in Business & Finance Other - Business & Finance

4 answers

Yes. Most assuredly. Positive. Unless accounting practice have changed since yesterday. If you include all 3 in the question. Variable cost are an operating cost. And, they are all tax deductible, too.

2007-07-24 04:55:06 · answer #1 · answered by Anonymous · 2 0

No they don't. Such costs are incidental costs. You only get depreciation on assets such as machinery, vehicles and fixtures and fittings. You only get interest charges if you borrow.

Operating costs are those which are necessary for you to operate. Examples would be

Gas and electricity plus heating
Telephone costs
Transport
Stationery
Wages
Insurance
Protective clothing

These are costs which you must incur to run your business depending on what it is. In other words, without spending on theses items the business could not operate.

2007-07-24 12:01:02 · answer #2 · answered by quatt47 7 · 0 0

FALSE

Depreciation & interest are not operating costs

2007-07-24 11:54:21 · answer #3 · answered by csucdartgirl 7 · 0 0

what???

2007-07-24 11:53:50 · answer #4 · answered by ROYaJANI 1 · 0 0

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