What term is used to describe the costs associated with running a business?

The term that describes the costs associated with running a business is "Operating Expenses." Operating expenses refer to the ongoing costs for running a business that are not directly tied to the production of goods or services. These may include costs such as rent, utilities, salaries, and other daily operational costs necessary for maintaining the business.

Understanding operating expenses is crucial for businesses, as these costs impact profitability and are essential for budgeting and financial analysis. By monitoring these expenses effectively, companies can identify areas where they can reduce costs and improve efficiency. This concept contrasts with other terms like capital products, which refer to assets like buildings and equipment, or consumer products, which pertain to goods that are sold to consumers. A business-format franchise is a specific type of business model, not a term for costs associated with running a business.