operating expense
Day-to-day cost
Operating expense is a cost incurred through normal business operations—rent, utilities, salaries, office supplies, marketing.
These are distinguished from capital expenditures (buying equipment or property) and cost of goods sold.
Operating expenses appear on income statements and affect profitability calculations: The company cut operating expenses by 15% through layoffs and renegotiating leases.
Payment for temporary use
- utilitiesEssential infrastructure services
- salariesFixed regular payments for work
- wagesPayment for work
- insuranceContractual risk coverage
maintenance · supplies · depreciation · amortization · lease payments · property tax · internet · cleaning services
Restorative maintenance work
- maintenancePreserving working condition
- equipmentTools for a task
- fuelEnergy source material
- shippingTransporting goods to destinations
logistics · raw materials · packaging · quality control · safety equipment · uniforms · tools · freight
Paid promotional communication
- marketingPromoting goods to consumers
- travelMovement between locations
- trainingDeveloping abilities through practice
- entertainmentAgreeable diversion of attention
promotions · conferences · sponsorships · public relations · trade shows · business development · employee perks · team building
Maintaining financial records
- legal feesPayment for counsel
- bookkeepingRecording financial transactions systematically
- auditingExamining records for accuracy
- consulting feesPayment for expert advice
bank charges · postage · printing · filing fees · professional services · permits · memberships · subscriptions
rent
Payment for temporary use
- utilitiesEssential infrastructure services
- salariesFixed regular payments for work
- wagesPayment for work
insurance · maintenance · supplies · depreciation · amortization · lease payments · property tax · internet · cleaning services · security
repairs
Restorative maintenance work
- maintenancePreserving working condition
- equipmentTools for a task
- fuelEnergy source material
shipping · logistics · raw materials · packaging · quality control · safety equipment · uniforms · tools · freight · warehousing
advertising
Paid promotional communication
- marketingPromoting goods to consumers
- travelMovement between locations
- trainingDeveloping abilities through practice
entertainment · promotions · conferences · sponsorships · public relations · trade shows · business development · employee perks · team building · research
accounting
Maintaining financial records
- legal feesPayment for counsel
- bookkeepingRecording financial transactions systematically
- auditingExamining records for accuracy
consulting fees · bank charges · postage · printing · filing fees · professional services · permits · memberships · subscriptions · payroll processing
operating expensecapital investment
Funds for durable assets
capital asset · fixed asset · long-term investment · capital improvement
operating expenseoperating income
Earnings from core operations
revenue · gross income · sales revenue · earnings · proceeds
operate, operating, operation, operations, operational, operationally, operative, operator, operators