Operating Expenses

What is included in operating expenses?

Selling, administrative, and general expenses.

What are selling expenses?

The costs associated with distributing, marketing, and selling a product or service.

Is depreciation an operating expense?

Yes, depreciation is included in operating expenses.

Is freight-out an operating expense?

Yes, freight-out is an operating expense.

Are salaries and wages an operating expense?

Yes, salaries and wages are included in operating expenses.

Are utilities an operating expense?

Yes, utility bills such as electricity and water are part of operating expenses.

Is advertising an operating expense?

Yes, advertising and promotional costs are included in operating expenses.

Is rent an operating expense?

Yes, the cost of leasing office space or facilities is an operating expense.

Are accounting and legal fees operating expenses?

Yes, expenses for financial and legal services are operating expenses.

Are bank charges operating expenses?

Yes, fees associated with banking services are operating expenses.

Are sales and marketing fees operating expenses?

Yes, costs for advertising, promotions, and sales efforts are operating expenses.

Are office supplies operating expenses?

Yes, expenses for stationery, equipment, and other supplies are operating expenses.

Are repairs operating expenses?

Yes, costs to maintain and fix equipment or property are operating expenses.

Are insurance expenses operating expenses?

Yes, premiums paid for business insurance coverage are operating expenses.

Is Cost of Goods Sold (COGS) an operating expense?

No. COGS is not an operating expense. It is reported separately as the direct cost of producing goods or services.

Are interest expenses operating expenses?

No. Interest expenses are reported under "Other expenses and losses," not as operating expenses.

Are income taxes operating expenses?

No. Income taxes are listed separately after income before taxes, not under operating expenses.