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' and 'Verwaltungskosten' can both refer to costs in a company or organization. However, 'Betriebskosten' is broader: it includes all ongoing costs needed for the business to operate, such as rent, energy, or staff. 'Verwaltungskosten' are only the part that arises from administration, office work, and management. The words can be confused because administration is also part of running a business. In practice: if you mean all ongoing costs, 'Betriebskosten' fits. If you mean only office work, organization, and management, 'Verwaltungskosten' is more precise.
Wir senken die Verwaltungskosten, weil viele Rechnungen jetzt automatisch bearbeitet werden.
We are lowering administrative costs because many invoices are now processed automatically.
Die Betriebskosten der kleinen Bäckerei sind wegen der hohen Energiepreise gestiegen.
The small bakery's operating costs have risen because of high energy prices.