What does operating expense mean?

Definitions for operating expense
op·er·at·ing ex·pense

This dictionary definitions page includes all the possible meanings, example usage and translations of the word operating expense.

Princeton's WordNet

  1. operating expense, operating cost, overhead, budget itemsnoun

    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

Wiktionary

  1. operating expensenoun

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

  2. operating expensenoun

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

ChatGPT

  1. operating expense

    Operating expense refers to the costs associated with running a business' day-to-day operations. This includes expenses such as salaries, utility bills, rent, maintenance, office supplies, and depreciation. These costs are subtracted from revenues in order to calculate a company's operating income. Operating expenses do not include costs associated with producing goods or services, which are classified as cost of goods sold.

Wikidata

  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.

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Numerology

  1. Chaldean Numerology

    The numerical value of operating expense in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of operating expense in Pythagorean Numerology is: 4

Examples of operating expense in a Sentence

  1. Juha Kinnunen:

    For shipping customers fuel costs are a major operating expense, and a critical element in all engines deals.

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"operating expense." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/operating+expense>.

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