Definition:
Recurring expenses associated with the day-to-day running of a facility, equipment, or system.
Key Components:
- Labor and maintenance
- Utilities and energy use
- Consumables and repairs
Use Cases/Industries:
- Power plants
- Transportation fleets
- Industrial facilities
Advantages:
- Essential for lifecycle cost analysis
- Identifies long-term affordability
Challenges:
- Can fluctuate over time
- Requires efficient management
Related Terms:
OPEX, Maintenance Cost, Lifecycle Cost
Example:
Fuel cell vehicles have higher capital costs but lower operating costs compared to diesel engines.
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Synonyms:
Ongoing Cost, OPEX, Operational Expenditure
