What term describes the ongoing costs that a company incurs to operate?

The term that accurately describes the ongoing costs that a company incurs to operate is "Recurring Expenses." Recurring expenses are regular payments that a business must make to maintain its operations, such as rent, utilities, salaries, and various overhead costs. These expenses are predictable and are typically incurred on a consistent basis, which helps businesses plan their budgets and manage their cash flow effectively.

Although "Overhead Costs" and "Fixed Costs" are related concepts, they define specific aspects of ongoing costs. Overhead costs often refer to indirect expenses that are necessary for running the business but aren't directly tied to producing goods or services. Fixed costs pertain to expenses that do not change with the level of output, such as lease payments or certain salaries, but they may not encompass all recurring costs, especially those that can fluctuate or vary with operational activities.

Choosing "General Expenses" could be misleading since this term does not specifically capture the recurring nature of the costs incurred regularly. Instead, it serves as a broader category that might include a range of expenses, both fixed and variable.

In summary, recurring expenses are the most appropriate term for ongoing operational costs, as they highlight the regularity and predictability of these expenditures essential for the business's functionality.