![]() They do not include the cost of goods sold (materials, direct labor, manufacturing overhead) or capital expenditures (larger expenses such as buildings or machines). The definition of operating expenses is sometimes expanded to include the cost of goods sold, thereby encompassing every operational aspect of a business. Operating expenses are expenses a business incurs to keep running, such as wages and supplies. ![]() A total of 560 million in selling and operating expenses, and 293 million in general and administrative expenses, were subtracted from that. If these costs were to be included, examples would include auditor fees, bank fees, debt placement costs, and interest expense. Updated ApWhat are Operating Expenses Operating expenses, operating expenditures, or opex, refers to the costs incurred by a business for its operational activities. In the financial year 2020/21, total operating income of the NHS amounted to just over 105 billion British pounds. This income statement shows that the company brought in a total of 4.358 billion through sales, and it cost approximately 2.738 billion to achieve those sales, for a gross profit of 1.619 billion. Note: Finance-related costs may be excluded from the operating expenses definition, on the grounds that they are not generated by the ongoing operations of a business. It refers to the expenses that a company must incur in order to run its business particularly for the purpose of producing revenue. Examples of Sales and Marketing-Related Operating Expenses Operating expenses are expenses other than your costs of goods sold, direct expenses, other income or other expenses.
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