Operating Expenses

Definition of ‘Operating Expenses’

Operating expenses are the indirect recurring costs of running a business such as general and administrative, selling and marketing, research and development expenses.

They are all the support costs of a business which are not directly attributable to the goods or services that the business is producing.

Operating expenses are sometimes referred to as overheads or fixed costs.

Template Operating Expenses Definition

The operating expenses definition for use in the financial projections template is all costs which are not included in the cost of sales.

Operating expenses should include research and development, sales and marketing, and general and administrative costs but do not include depreciation, interest and tax which are shown separately.

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Operating Expenses January 5th, 2016Team

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