What are operating expenses?

Operating expenses are those that allow to maintain the daily activity of a company, which are not usually directly linked to production. Both the term operating expenses and operational expenses are often used.

These costs are incurred in the normal development of the economic entity, according to the purpose for which it was founded and record the expenses incurred during a financial year in relation to the development approach of the financial, legal, commercial and executive activity. administrative management direction.

The concept of operating expenses is distributed in financial expenses, administrative expenses, general expenses and representation expenses. This term includes salaries, sales commissions, travel, fees, transportation, office services, worker benefits, check writing, interest payments, leases and rentals, insurance, impuestos, repair and supplies.

Example of operational expenses

Another term by which operating or operating expenses are known is indirect expenses. This is so because investments are not contemplated or a short-term benefit is expected. These types of costs are focused on guaranteeing the operation and subsistence of the company.

To explain this term a little better, an example of operating expenses can be used. The purchase of machines for production represents an investment by companies in order to achieve a series of benefits in the future. However, the expenses incurred for the purchase of items that guarantee the proper functioning or maintenance of said machinery are included in the chapter on operating expenses. This is the case, therefore, of a photocopier and the sheets of paper that are used to guarantee their correct operation.

Operating expenses are those that ensure the proper functioning of the business and are included in the budgets The exercise. Know all the information about operating costs of the company and learn how to carry out its calculation to carry out a correct management of your company.

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