Which term refers to the expenses incurred in operations?

The term that refers to the expenses incurred in operations is cost. In a business context, costs are the expenditures that a company incurs in order to produce goods or provide services. These expenses can include salaries, materials, utilities, rent, and other operational liabilities. Understanding costs is essential for managing operations because it helps businesses determine pricing strategies, evaluate profitability, and make informed financial decisions.

Revenue, on the other hand, refers to the income generated from selling goods or services, while profit is the difference between revenue and costs. Investment typically relates to the capital allocated for business growth or asset acquisition. Thus, the correct identification of "cost" is key to understanding the financial aspects of managing operations effectively.