Operational costs are all the expenses associated with a business’ day-to-day operations. This can include wages and salaries, rents, utilities, insurance premiums, legal fees, advertising, marketing, accounting and other general overhead. In short, operational costs are the money that businesses must pay out to continue their ongoing core activities. A healthy operational cost structure is essential to a company’s long-term success and sustainability. Knowing where and how these costs can be reduced or optimized is key to staying competitive.