What are the 4 operating expenses?

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 other operating expenses?

Other Operating Expenses means the Company’s total Operating Expenses, excluding base management fees, incentive fees, Organization and Offering Expenses, financing fees and costs, interest expense, brokerage commissions and extraordinary expenses.

Which of the following is an example of operating 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 …

What are 5 types of expenses?

Types of Expenses
  • Cost of Goods Sold (COGS) Cost of Goods Sold (COGS) …
  • Operating Expenses – Selling/General and Admin. Operating expenses are related to selling goods and services and include sales salaries, advertising, and shop rent. …
  • Financial Expenses. …
  • Extraordinary Expenses. …
  • Non-Operating Expenses.

Is salary an operating expense?

Examples of OPEX include employee salaries, rent, utilities, property taxes, and cost of goods sold (COGS). Capital expenditures cannot be deducted from income for tax purposes while operating expenses can be deducted from taxes.

What are operating expenses 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.

What are the 3 types of expenses?

Fixed expenses, variable expenses, and irregular expenses are the three categories that make up your budget, and are vitally important when learning to manage your money properly. When you’ve committed to following a budget, you must know how to put your plan into action.

What are the three types of expenditure?

In accounting terminology, there are three types of expenditure that a business can incur:
  • Capital Expenditure.
  • Revenue Expenditure and.
  • Deferred Revenue Expenditure.

What is miscellaneous expense?

Miscellaneous expense is a general ledger account that may contain a large number of minor transactions. These transactions are for amounts so small that they are not worth categorizing in a separate account. If any of these expenses increase in size in later periods, they may then be tracked within a separate account.

What are general expenses?

General expenses are the costs a business incurs as part of its daily operations, separate from selling and administration expenses. … Examples of general expenses include rent, utilities, postage, supplies and computer equipment.

What are general business expenses?

Business expenses are costs incurred in the ordinary course of business. … Business expenses are part of the income statement. On the income statement, business expenses are subtracted from revenue to arrive at a company’s taxable net income. Business expenses may also be referred to as deductions.

Is office expense an operating expense?

The primary types of operating expenses include payments that are related to compensation, sales and marketing, office supplies and non-facility fees.

What’s included in operating income?

Operating income includes both COGS—or cost of sales—and operating expenses. However, operating income does not include items such as other income, non-operating income, and non-operating expenses. Instead, those figures are included in the net income calculation.

How do I find a company’s operating expenses?

From a company’s income statement, take the total cost of goods sold, or COGS, which can also be called cost of sales. Find total operating expenses, which should be further down the income statement. Add total operating expenses and COGS to arrive at the total operating costs for the period.

What are direct expenses?

Examples of Direct Expenses are royalties charged on production, job charges, hire charges for use of specific equipment for a specific job, cost of special designs or drawings for a job, software services specifically required for a job, travelling Expenses for a specific job.

Is interest expense an operating expense?

An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. … It is essentially calculated as the interest rate times the outstanding principal amount of the debt.

What are indirect operating expenses?

Indirect expenses are those expenses that are incurred to operate a business as a whole or a segment of a business, and so cannot be directly associated with a cost object, such as a product, service, or customer.

Is rent direct expenses?

There are very few direct costs. … Other costs that are not direct costs include rent, production salaries, maintenance costs, insurance, depreciation, interest, and all types of utilities. Thus, when in doubt, assume that a cost is an indirect cost, rather than a direct cost.

How many types of indirect expenses are there?

are some examples of indirect costs. Factory expenses, administrative expenses. read more, and selling and distribution expenses are the three types of indirect expenses.