Operating expenses are costs linked to the supply of goods or services by the company. Similar to operating income, the cost relates to the core business functions and does not involve sudden losses due to fire, natural calamity etc.,
For example, a small business owner sells stationery in an outlet and wishes to check the operating profits. The owner classifies the expenses related to the sale of stationery and ignores other costs like loss due to theft etc., involved to identify the operating profits.
Related Articles
Operating Income
Operating income relates to that part of the revenue which is associated with the operating activities of the company. The operating activities are the core business functions which is linked to the sale of goods or services. For example, XYZ company ...
Revenue
The income from operating and non-operating activities of a business like sale of goods or services, interest income, etc is known as the revenue for a business. Revenues help to increase the value of Assets and decrease the value of liabilities in a ...
Expense
An expense is the amount spent on activities that help a business to produce and sell goods or services to generate revenue. Expenses when incurred lead to a reduce in the value of assets in the organization. Expense accounts are ...
Windows
Windows most commonly refers to the Microsoft Windows operating systems.
Cross-Platform
Cross-platform (a.k.a. agnostic, agnostic application and agnostic platform) refers to something that is interoperable among different operating systems, systems and platforms. Cross-platform, however, is more focused on software that can run on any ...