Definitions for operating expense

This page provides all possible meanings and translations of the word operating expense

Princeton's WordNetRate this definition:(0.00 / 0 votes)

  1. operating expense, operating cost, overhead, budget items(noun)

    the expense of maintaining property (e.g., paying property taxes and utilities and insurance); it does not include depreciation or the cost of financing or income taxes

WiktionaryRate this definition:(0.00 / 0 votes)

  1. operating expense(Noun)

    Any expense incurred in running a business, such as sales and administration, as opposed to production.

  2. operating expense(Noun)

    The money an entity spends in order to turn inventory into throughput.

FreebaseRate this definition:(0.00 / 0 votes)

  1. Operating expense

    An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure, is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves CAPEX, and the annual paper, toner, power and maintenance costs represents OPEX. For larger systems like businesses, OPEX may also include the cost of workers and facility expenses such as rent and utilities. In business, an operating expense is a day-to-day expense such as sales and administration, or research & development, as opposed to production, costs, and pricing. In short, this is the money the business spends in order to turn inventory into throughput. On an income statement, "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year. In throughput accounting, the cost accounting aspect of the theory of constraints, operating expense is the money spent turning inventory into throughput. 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.

Translation

Find a translation for the operating expense definition in other languages:

Select another language:

Discuss these operating expense definitions with the community:

Word of the Day

Would you like us to send you a FREE new word definition delivered to your inbox daily?

Please enter your email address:     


Citation

Use the citation below to add this definition to your bibliography:

Style:MLAChicagoAPA

"operating expense." Definitions.net. STANDS4 LLC, 2015. Web. 4 May 2015. <http://www.definitions.net/definition/operating expense>.

Are we missing a good definition for operating expense? Don't keep it to yourself...


The Web's Largest Resource for

Definitions & Translations


A Member Of The STANDS4 Network


Nearby & related entries:

Alternative searches for operating expense:

Thanks for your vote! We truly appreciate your support.