Financial Statements
Operating Expense
Definition
What is Operating Expense?
A cost incurred in running a business that is not directly included in cost of goods sold.
Example in practice
How This Looks in Practice
Salaries, rent, marketing, and administrative costs are operating expenses.
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Related Terms
Financial Statements
Revenue
Income generated from selling goods or services before expenses are deducted.
Financial StatementsSales Growth
The percentage increase or decrease in revenue over a period.
Financial StatementsCost of Goods Sold
Direct costs attributable to goods or services sold during a period.
Financial RatiosGross Margin
Gross profit expressed as a percentage of revenue.