Question

Which of the following is the best definition of probable operating costs?

a) Amount of money required to start a business
b) Amount of money required to market a business
c) Amount of money required to purchase business equipment
d)Amount of money required to keep a business running

Answer 1

I would choose (d).
(a) refers to set up costs which includes capital investments that are not operating in nature.
(b) is marketing costs, is part of (d)
(c) is capital expenses - not considered operating. Depreciation and amortisation of these expenses would be considered operating.

Answer 2

d)Amount of money required to keep a business running