What are operating expenses?
5paisa Research Team
Last Updated: 19 Sep, 2024 04:51 PM IST

Content
- Operating Expenses
- What Are Operating Expenses?
- What is Included in Operating Expenses?
- Operating Vs. Non-Operating Expenses
- What are Non-Operating Expenses?
- What Is the Difference Between Capital and Operating Expenses?
- To Summarize
Operating Expenses
Operating Expenses, although often overlooked by first-time business owners, are essential to keeping a company afloat. Simply put, they are the daily funds spent to keep the business alive.
A company's operating expenses include:
● Electricity
● Supplies
● Insurance premiums
● Salaries and other costs
These expenses are critical when looking at its income statement, which provides a quantitative assessment of the company's revenue and expenditures.
Any business needs to recognize and manage operating expenses to run smoothly. This article discusses how operating costs differ from capital expenditures and their importance.
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