Monthly Costs (averaged)

Formal

The Monthly costs (averaged) of running a business - including all fixed and variable costs. These include every item of expenditure that the company pays for in a month. Reducing Monthly costs has a dramatic impact upon profitability and therefore share price and company valuations.

Real-world Example

A business's costs vary month to month due to seasonal spikes, so it calculates monthly costs averaged across the year to get a smoother, more representative figure for budgeting and comparison.