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Business 101: What Do The Terms Aging, Operating Costs, And Overhead Mean?

 what does overhead mean, what does aging mean, what do operating expenses mean

There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.  

Well, here at 2BH we’re going to give you the answers to the questions you might have been too embarrassed to ask.

Here are the terms for today:

Aging is tracking the time between now and when a payment is due on an invoice. (This is usually described in terms such as thirty days, sixty days, and ninety days overdue).

Operating costs are the total costs you have to run the business on a day-to-day basis.

Overhead describes the ongoing administrative costs that need to be paid no matter how much or how little you sell. (This would be a part of your operating costs.)

 

Photo by Patrick Felle

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About Scott Aughtmon (1872 Articles)
I’m author of the book 51 Content Marketing Hacks. I am also a regular contributor to ContentMarketingInstitute.com and I am the person behind the popular infographic 21 Types of Content We Crave. I’m a business strategist, consultant, content creation specialist, and speaker. I’ve been studying effective marketing and business methods (both online and offline) since 1999. ===> If you would like to see ways that we could work together, then please click here to learn more.