What is included in the operating expenses?

What is included in the operating expenses?

Common operating expenses for a company include rent, payroll, travel, utilities, insurance, maintenance and repairs, property taxes, office supplies, depreciation and advertising.

How many types of operating expenses are there?

There are two common categories of expenses that businesses have to pay: fixed and variable costs. Both have a very important role in the normal operations of any company.

What are the 4 types of expenses?

Terms in this set (4)

• Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).
• Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)
• Intermittent expenses. …
• Discretionary (non-essential) expenses.

Are bank charges operating expenses?

If these costs were to be included, examples would include auditor fees, bank fees, debt placement costs, and interest expense. The definition of operating expenses is sometimes expanded to include the cost of goods sold, thereby encompassing every operational aspect of a business.

What expenses are not operating expenses?

A non-operating expense is a cost that isn’t directly related to core business operations. Examples of non-operating expenses are interest payments on debt, restructuring costs, inventory write-offs and payments to settle lawsuits.

Is salary a operating expense?

Operating expenses include employee salaries, buildings and utilities, tools, materials and equipment, and marketing costs. Operating expenses are represented on a company’s balance sheet as a subcategory under the category of liabilities. Operating expenses are not the same as capital expenses.