ENTREPRENEURSHIP

Detailed explanation-1: -Overhead costs, also called “overhead expenses” or “operating expenses", are expenses associated with running a business that can’t be linked to creating or producing a product or service. They are the expenses the business incurs to stay in business, regardless of its success level.

Detailed explanation-2: -Operating costs include both costs of goods sold (COGS) and other operating expenses-often called selling, general, and administrative (SG&A) expenses.

Detailed explanation-3: -Operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Detailed explanation-4: -Operating expenses are the result of a business’s normal operations, such as materials, labor, and machinery involved in production. Overhead expenses are what it costs to run the business, including rent, insurance, and utilities. Operating expenses are required to run the business and cannot be avoided.

Detailed explanation-5: -Mainly, operational costs are divided into two categories, there are fixed costs and variable costs. Fixed costs have the same amount, while variable costs differ depending on the production level. Here are the detailed explanations regarding the types of operating costs.