administrative costs
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administrative costs
Costs incurred in a company or organization for administration, organization, and management that cannot be directly assigned to a product or service. These include, for example, salaries for management, rent for office space, or office supplies.
Um profitabler zu werden, muss das Unternehmen seine hohen Verwaltungskosten senken.
To become more profitable, the company needs to reduce its high administrative costs.
The word is composed of 'die Verwaltung' (administration) and 'die Kosten' (costs; plural). So it literally describes the costs incurred for the administration of an organization or company.
Die Verwaltung des Unternehmens hat ihren Sitz in Berlin.
The company's administration is based in Berlin.
This noun is used almost exclusively in the plural, since it usually refers to a sum of different types of costs. The singular 'die Verwaltungskoste' is very uncommon.
Die Verwaltungskosten sind in diesem Quartal unerwartet gestiegen.
Administrative costs have risen unexpectedly this quarter.
In a business context, the word is often combined with verbs like 'senken' (to lower/reduce), 'reduzieren' (to reduce), or 'decken' (to cover). Typical adjectives are 'hohe' (high), 'niedrige' (low), or 'fixe' (fixed) administrative costs.
Das Start-up versucht, seine Verwaltungskosten möglichst niedrig zu halten.
The start-up is trying to keep its administrative costs as low as possible.
operating costs / service charges
Betriebskosten include all of a company's ongoing costs, such as personnel, premises, and energy. Verwaltungskosten are only the portion arising from organization, administration, and management. Betriebskosten is therefore appropriate for the entire ongoing operation, while Verwaltungskosten is appropriate for office work and company management.
Der Geschäftsführer prüft die Verwaltungskosten für Büromaterial, Büroräume und Leitung.
The managing director reviews the administrative costs for office supplies, office space, and management.
Der Geschäftsführer prüft die Betriebskosten für Personal, Räume und Energie.
The managing director reviews the operating costs for personnel, premises, and energy.
