Operating Expense
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Transcript of Operating Expense
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7/28/2019 Operating Expense
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OPERATING EXPENSE
An operating expense, operating expenditure, operational expense, operational expenditure orOPEX is an
ongoing cost for running a product,business, or system.[1]
Its counterpart, acapital expenditure(CAPEX), is the cost
of developing or providing non-consumable parts for the product or system. For example, the purchase of
aphotocopierinvolves CAPEX, and the annual paper,toner, power and maintenance costs represents OPEX.[2]
For
larger systems like businesses, OPEX may also include the cost of workers and facility expenses such as rent and
utilities.
Inbusiness, an operating expense is a day-to-dayexpensesuch assalesandadministration, orresearch &
development, as opposed toproduction, costs, and pricing. In short, this is themoneythe business spends in order to
turninventoryintothroughput.
On anincome statement, "operating expenses" is the sum of a business's operating expenses for a period of time,
such as a month or year.
Inthroughput accounting, thecost accountingaspect of thetheory of constraints(TOC), operating expense is
themoneyspent turninginventoryintothroughput.[3]
In TOC, operating expense is limited to costs that vary strictly
with the quantity produced, like raw materials and purchased components. Everything else is a fixed cost, including
labour (unless there is a regular and significant chance that workers will not work a full-time week when they reporton its first day).
In areal estatecontext, operating expenses include costs associated with the operation and maintenance of an
income-producing property.
Operating expenses include:
accounting expenses
licensefees
maintenance and repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care
advertising
office expenses
supplies
attorney fees and legal fees
utilities, such as telephone
insurance
property management, including a resident manager
property taxes
travel and vehicle expenses
Travel expenses are defined as those incurred in the event of travel required for professional purposes.
For this purpose, travel is defined as the simultaneous absence from theresidenceand from the regular
place ofemployment. It is prompted by professional or company purposes and likely does not concern the
travellers private life, or concerns it only to a small degree. Travel expenses include travel costs and fares,
accommodation expenses, and so-called additional expenses formeals. For the self-employed
(contractorsandfreelancers), the expenses constitute businessexpenses.
leasing commissions
salary and wages
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Operating_expense#cite_note-1http://en.wikipedia.org/wiki/Operating_expense#cite_note-1http://en.wikipedia.org/wiki/Operating_expense#cite_note-1http://en.wikipedia.org/wiki/Capital_expenditurehttp://en.wikipedia.org/wiki/Capital_expenditurehttp://en.wikipedia.org/wiki/Capital_expenditurehttp://en.wikipedia.org/wiki/Photocopierhttp://en.wikipedia.org/wiki/Photocopierhttp://en.wikipedia.org/wiki/Photocopierhttp://en.wikipedia.org/wiki/Tonerhttp://en.wikipedia.org/wiki/Tonerhttp://en.wikipedia.org/wiki/Tonerhttp://en.wikipedia.org/wiki/Operating_expense#cite_note-2http://en.wikipedia.org/wiki/Operating_expense#cite_note-2http://en.wikipedia.org/wiki/Operating_expense#cite_note-2http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Expensehttp://en.wikipedia.org/wiki/Expensehttp://en.wikipedia.org/wiki/Expensehttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Administration_(business)http://en.wikipedia.org/wiki/Administration_(business)http://en.wikipedia.org/wiki/Administration_(business)http://en.wikipedia.org/wiki/Research_%26_developmenthttp://en.wikipedia.org/wiki/Research_%26_developmenthttp://en.wikipedia.org/wiki/Research_%26_developmenthttp://en.wikipedia.org/wiki/Research_%26_developmenthttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Throughput_(business)http://en.wikipedia.org/wiki/Throughput_(business)http://en.wikipedia.org/wiki/Throughput_(business)http://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Throughput_accountinghttp://en.wikipedia.org/wiki/Throughput_accountinghttp://en.wikipedia.org/wiki/Throughput_accountinghttp://en.wikipedia.org/wiki/Cost_accountinghttp://en.wikipedia.org/wiki/Cost_accountinghttp://en.wikipedia.org/wiki/Cost_accountinghttp://en.wikipedia.org/wiki/Theory_of_constraintshttp://en.wikipedia.org/wiki/Theory_of_constraintshttp://en.wikipedia.org/wiki/Theory_of_constraintshttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Throughputhttp://en.wikipedia.org/wiki/Throughputhttp://en.wikipedia.org/wiki/Operating_expense#cite_note-3http://en.wikipedia.org/wiki/Operating_expense#cite_note-3http://en.wikipedia.org/wiki/Operating_expense#cite_note-3http://en.wikipedia.org/wiki/Fixed_costhttp://en.wikipedia.org/wiki/Fixed_costhttp://en.wikipedia.org/wiki/Fixed_costhttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Mealhttp://en.wikipedia.org/wiki/Mealhttp://en.wikipedia.org/wiki/Mealhttp://en.wikipedia.org/wiki/Independent_contractorhttp://en.wikipedia.org/wiki/Independent_contractorhttp://en.wikipedia.org/wiki/Independent_contractorhttp://en.wikipedia.org/wiki/Freelancerhttp://en.wikipedia.org/wiki/Freelancerhttp://en.wikipedia.org/wiki/Freelancerhttp://en.wikipedia.org/wiki/Expenseshttp://en.wikipedia.org/wiki/Expenseshttp://en.wikipedia.org/wiki/Expenseshttp://en.wikipedia.org/wiki/Expenseshttp://en.wikipedia.org/wiki/Freelancerhttp://en.wikipedia.org/wiki/Independent_contractorhttp://en.wikipedia.org/wiki/Mealhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Fixed_costhttp://en.wikipedia.org/wiki/Operating_expense#cite_note-3http://en.wikipedia.org/wiki/Throughputhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Theory_of_constraintshttp://en.wikipedia.org/wiki/Cost_accountinghttp://en.wikipedia.org/wiki/Throughput_accountinghttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Throughput_(business)http://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://en.wikipedia.org/wiki/Research_%26_developmenthttp://en.wikipedia.org/wiki/Research_%26_developmenthttp://en.wikipedia.org/wiki/Administration_(business)http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Expensehttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Operating_expense#cite_note-2http://en.wikipedia.org/wiki/Tonerhttp://en.wikipedia.org/wiki/Photocopierhttp://en.wikipedia.org/wiki/Capital_expenditurehttp://en.wikipedia.org/wiki/Operating_expense#cite_note-1http://en.wikipedia.org/wiki/Business 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