Which of the following is an example of an operational cost?

Operational costs refer to the ongoing expenses that a business incurs through its normal day-to-day activities. These costs are essential for the maintenance of the business’s operations and can include various expenses necessary for running the company effectively.

Utilities bills are a prime example of operational costs as they encompass the regular payments made for services such as electricity, water, gas, and heating. These are recurring expenses that a business must pay to maintain a functional workplace.

In contrast, the other options represent costs that do not fall into the regular operational expenditure category. Asset sales proceeds refer to income generated from selling assets, which is not an expense. End of life costs consist of expenses related to the disposal or decommissioning of assets once they reach the end of their useful life. Environmental cleanup costs relate to expenses incurred for cleaning up after environmental damage, which typically occur on an irregular basis and can vary significantly from standard operational costs. These distinctions highlight the nature of expenses categorized under operational costs.