What Are Operating Expenses? What Expenses Make it Up?
Operating expenses are expenses incurred for day-to-day business operations, not directly associated with product production.
Operating expenses include selling, general, and administrative costs, depreciation and amortization, research and development costs, and the portion of long-term debt due in the period.
For example, if you are selling widgets, the cost of opening, running, and staffing your widget shop, advertising for your widget shop, and development of a better and improved future widget would all be classified as operating expenses.
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Published: 6/03/2021
