operating expenses



An expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production. Operating expenses include such things as payroll, sales commissions, employee benefits and pension contributions, transportation and travel, amortization and depreciation, rent, repairs, and taxes. These expenses are usually subdivided into selling expenses and administrative and general expenses. Also called non-manufacturing expenses.

Use operating expenses in a sentence

  • Knowing what your operating expenses are to make a product will help you to set a correct price for it.

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  • The operating expenses were decreasing as our inventory had an unexpected few years of usable life in it which delighted us.

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  • The company broke even on profits because they had a lot of operating expenses that cost quite a bit of money.

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