{"id":22645,"date":"2020-04-10T18:38:13","date_gmt":"2020-04-10T18:38:13","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/operating-costs\/"},"modified":"2024-12-23T09:21:18","modified_gmt":"2024-12-23T09:21:18","slug":"operating-costs","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/operating-costs","title":{"rendered":"Operating Costs"},"content":{"rendered":"<p>What is the meaning \/ definition of Operating Costs in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>Operating Costs, also known as Cost of Goods Sold (<a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/operating-costs\">COGS<\/a>), is a cost which is directly related to everything needed to keep a business up and running.<\/p>\n<p style=\"text-align: left;\">Examples for Operating Costs include items such as payroll, rent, office supplies, utilities, marketing, insurance, accounting, legal fees and taxes. Calculating Operating Costs requires only that you add up the expenses that make up your annual <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/fixed-costs\">fixed costs<\/a> and your variable costs. To reduce Operating Costs many businesses increase their outsourced staff or become more eco-friendly (lower electricity bills, no paper, etc.).<\/p>\n<p><strong>Formula:<\/strong><\/p>\n<p style=\"text-align: justify;\">Operating Costs = Costs of Goods Sold + Operating Expenses<\/p>\n<p><strong>See Also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/operating-costs\">COGS<\/a> \u2013 Cost of Goods Sold<\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/fixed-costs\">Fixed Costs<\/a><\/li>\n<li>Variable Costs<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of Operating Costs in  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,45],"tags":[],"class_list":["post-22645","post","type-post","status-publish","format-standard","hentry","category-glossary","category-o"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Operating Costs Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: Operating Costs, also known as Cost of Goods Sold, is a cost which is directly related to everything needed to keep the business up and running.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/glossary\/operating-costs\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Operating Costs Definition \/ Meaning - Xotels\" \/>\n<meta property=\"og:description\" content=\"Definition: Operating Costs, also known as Cost of Goods Sold, is a cost which is directly related to everything needed to keep the business up and running.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/glossary\/operating-costs\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-10T18:38:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T09:21:18+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/operating-costs#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/operating-costs\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"Operating Costs\",\"datePublished\":\"2020-04-10T18:38:13+00:00\",\"dateModified\":\"2024-12-23T09:21:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/operating-costs\"},\"wordCount\":123,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"Hotel Terminology &amp; 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