Examples of sales and marketing costs that qualify as OPEX include website management, paid advertising, promotional materials, signage, sales and marketing staff salaries, travel and entertainment, and any other sales and marketing operations. Clarifying potential operating expensesĪll sales and marketing activities paid for by a business are considered operating costs.Common examples of operating expenses for businesses.What do operating expenses say about your business?.Read on to learn about the different operating expenses and how to calculate these expenses for your company. These operating expenses-also known as OPEX or Selling, General, and Administrative (SG&A) expenses-should be regarded as separate from costs incurred due to capital investments in assets (CAPEX) and activities directly involved in the production of goods and services (COGS).īecause operating expenses play a large role in the profitability of a business, business owners should understand the details of their own operating costs and how they impact the bottom line. Examples include the non-manufacturing component of payroll, rent, office supplies, and utility costs. Operating expenses are the overhead costs a business incurs to maintain its day-to-day operations. Then, most other expenses are classified as operating expenses. Manufacturing companies, however, break expenses down, with the cost of goods sold (COGS) separated from other expenses so a simple gross margin can be calculated as revenue minus COGS. For a non-manufacturing company, operating expenses might be defined as including all expenses necessary for running the business.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |