Which of the following is an operating expense?

What Is an Operating Expense? An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

What are examples of operating expenses?

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

Which of the following is an operating expense quizlet?

Any regular expenses associated with the operation of the business, including rent, salaries, utilities, insurance, and depreciation.

Which of the following is not considered as an operating expense?

Interest on debenture is not directly associated with the routine business activity, hence its a non operating expense.

What is an operating expense called?

Operating expenses—also called selling, general and administrative expenses (SG&A)—are the costs of running a business. They include rent and utility costs, marketing expenditures, computer equipment and employee benefits.

WHAT IS AN OPERATING EXPENSE ?

How do you find the operating expense?

What are operating and non operating expenses?

Operating expenses are costs that a company must make to perform its operating activities — the primary activities that generate revenue. Non-operating expenses are costs that were not directly required for those activities.

Which of the following is not considered in operating expenses quizlet?

Which of the following is not considered an operating expense for appraisal or income tax purposes? Operating expenses include fixed expenses, variable expenses, and reserve for replacements. Mortgage payments, called debt service, are not considered an operating expense.

Is labor an operating expense?

Examples of operating expenses include materials, labor, and machinery used to make a product or deliver a service. For example, operating expenses for a soda bottler may include the cost of aluminum for cans, machinery costs, and labor costs. Reducing operating expenses can give companies a competitive advantage.

Is depreciation an operating expense?

Depreciation expense is reported on the income statement as any other normal business expense. If the asset is used for production, the expense is listed in the operating expenses area of the income statement. This amount reflects a portion of the acquisition cost of the asset for production purposes.

What are the 10 example of expenses?

The examples of the Operating expenses are legal fees, rent, depreciation, office equipment, and supplies, Accounting expenses, insurance, repairs and maintenance expenses, utility expenses like electricity, water, etc, telephone and internet expenses, property taxes, payroll tax expenses, pensions, advertisement ...

Are taxes an operating expense?

Operating expenses are the expenses your business incurs on a daily basis. Typical operating expenses include rent, payroll, utilities, printing, postage, and property taxes.

What are the 3 types of expenses?

There are three major types of expenses we all pay: fixed, variable, and periodic.

What's included in operating income?

Operating income is the sum total of a company's profit after subtracting its regular, recurring costs and expenses. The disparity between these two figures can be an important barometer of a company's financial health.

Which of the following expenses does not affect operating income?

Cost of goods sold. Which of the following expenses does not affect operating income? Income tax expense.

Which of the following expenses are not included in calculating net operating expenses?

Operating expenses include the costs of running and maintaining the building, including insurance premiums, legal fees, utilities, property taxes, repair costs, and janitorial fees. Capital expenditures, such as costs for a new air-conditioning system for the entire building, are not included in the calculation.

Is fuel an operating expense?

I would leave fuel costs on page 1 of Schedule C as operating expenses since you are not reselling the fuel to the customers. Other standard operating excpenses would be the same. Reserve COGS for items you turn into a profit center - items, not services.

What are the types of expense?

There are three major types of expenses we all pay: fixed, variable, and periodic.

What are 5 fixed expenses?

Examples of Fixed Expenses

Rent or mortgage payments. Renter's insurance or homeowner's insurance. Cell phone service. Internet service.

What are 5 examples of variable expenses?

Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.

What are the 4 types of expenses?

Is Other expense an operating expense?

Operating costs include direct costs of goods sold (COGS) and other operating expenses—often called selling, general, and administrative (SG&A)—which include rent, payroll, and other overhead costs, as well as raw materials and maintenance expenses.

Is loss by fire an operating expense?

Loss by fire loss by theft etc are Operating expenses.

What are 2 types of expenses?

Which are examples of expenses quizlet?

Expenses that vary from month to month. Examples: electricity, gasoline, groceries, clothing. These expenses remain the same from month to month. Examples: Rent, mortgage, insurance premiums, cable bill.