Operating Revenue Cost

Koray_bademci

This discussion will focus on the costs associated with operating revenue, such as labor, materials, and overhead expenses. We will also look at the different methods of calculating operating costs, such as cost-plus pricing, absorption costing, and activity-based costing. We will also discuss the importance of understanding operating costs and how they can be used to make better business decisions.

Eelis_kivisto

Cost of operating revenue (COR) is an important financial metric that quantifies a business's operating expenses and how they relate to the revenues generated from its operations. It is calculated by taking the total operating costs of running a business, like labor, rent, and utilities, and subtracting them from the total revenue of the business. This figure will give an indication of the overall cost associated with running the business and can be used to identify areas where costs can be reduced or revenue increased. In essence, COR is an indicator of how effectively the business is operating, and can be used to formulate long-term strategies and decisions.