Meaning of the word "operating cost" in English

What does "operating cost" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

operating cost

US /ˈɑpəˌreɪtɪŋ kɔst/
UK /ˈɒpəreɪtɪŋ kɒst/

Noun

the expenses associated with the day-to-day running of a business, excluding the cost of goods sold

Example:
Reducing operating costs is crucial for increasing profit margins.
The company is looking for ways to cut down on its monthly operating costs.