OMM costs within a company are the operating, maintenance and monitoring costs that need to be considered. The five main types of OMM costs are raw materials and components, plant, labour, inventory and distribution.
Operating costs for companies are the recurring expenses, which are related to the operation of the business. In a large company these operating costs fall into two categories; fixed costs and variable costs. Fixed costs are the same whether the company is running at 100 per cent or closed, while variable costs may increase depending on whether the production is done and how it is done. An organisation will have overhead costs that cover the resources that are needed simply for the business to operate, such as the cost of electricity or the rent for office space. Equipment operating costs are spent when equipment is used by the company, this cost does not include the original pricing of the tools. Operating costs therefore affect the material and components as well as the labour and plant.
Maintenance costs make themselves aware during the time that a company is running. After expenses have been made on starting up the company and giving it the ability to operate, money then needs to be spent on maintaining the company to a good standard. These costs may include staff wages, the maintenance of any equipment in use or to provide advertising and marketing to maintain the company’s presence.
Finally monitoring costs have to be considered in a company. The majority of these expenses are spent on salaries of employers who are hired to monitor certain aspects of the company. This can include monitoring the inventory of the business or the distribution of products and services. It is important for companies to monitor the OMM costs of their business in order to make predictions about future profits and losses.
Operating costs for companies are the recurring expenses, which are related to the operation of the business. In a large company these operating costs fall into two categories; fixed costs and variable costs. Fixed costs are the same whether the company is running at 100 per cent or closed, while variable costs may increase depending on whether the production is done and how it is done. An organisation will have overhead costs that cover the resources that are needed simply for the business to operate, such as the cost of electricity or the rent for office space. Equipment operating costs are spent when equipment is used by the company, this cost does not include the original pricing of the tools. Operating costs therefore affect the material and components as well as the labour and plant.
Maintenance costs make themselves aware during the time that a company is running. After expenses have been made on starting up the company and giving it the ability to operate, money then needs to be spent on maintaining the company to a good standard. These costs may include staff wages, the maintenance of any equipment in use or to provide advertising and marketing to maintain the company’s presence.
Finally monitoring costs have to be considered in a company. The majority of these expenses are spent on salaries of employers who are hired to monitor certain aspects of the company. This can include monitoring the inventory of the business or the distribution of products and services. It is important for companies to monitor the OMM costs of their business in order to make predictions about future profits and losses.
