Operating Expense financial definition of Operating Expense. Operating Expense finance term by the Free Online Dictionary.

Operating Expenses

A company's expenses related to the production of its goods and services. Examples of operating expenses include wages for employees, research and development, and costs of raw materials. Operating expenses do not include taxes, debt service, or other expenses inherent to the operation of a business but unrelated to production. See also: Operating income.

operating expense

An expense incurred in transacting normal business operations. Operating expenses include administrative and selling expenses but exclude interest, taxes, and cost of goods sold.

Operating Expense

What Does Operating Expense Mean?

An expenditure that a business incurs as a result of normal business operations; a challenge faced by a company's management is to determine how much operating expenses can be reduced without significantly affecting the firm's ability to compete with its competitors. Also known as OPEX.

Investopedia explains Operating Expense

As an example, the payment of employee wages and the allocation of funds for research and development are operating expenses. In the absence of raising prices or finding new markets or product channels to increase sales and raise profits, some businesses attempt to increase the bottom line solely by cutting expenses. Although laying off employees and reducing product quality initially can boost earnings and may even be necessary when a company has lost its competitiveness, operating expenses can be cut only so much before the quality of business operations is damaged.

Mentioned in	?		Financial browser	?		Full browser	?
Annual Fund Operating Expenses expense ratio operating expense ratio operating expenses operating income Operating Loss Operating Ratio OPEX Payout Phase			Operacion de canje Operacion de cierre Operacion de contado Operacion de rescate Operacion en bloque Operacion para cancelar Operacion que abre una posicion nueva Operacion sin riesgo Operaciones anonimas Operaciones basadas en informacion Operaciones de mercado abierto Operaciones poscierre Operador Operador de inversores institucionales Operador de la punta contraria Operador de valores Operador especializado en bonos operating and easement agreement Operating Assets operating budget operating capital Operating Cash Flow Operating Cash Flow Ratio Operating Company Operating Cycle Operating Expense operating expense escalation operating expense ratio operating expenses Operating Exposure Operating in the Red operating income operating lease operating leverage Operating Loss Operating Margin Operating Profit Operating Profit Margin Operating Rate Operating Ratio Operating Ratios Operating Revenue Operating Risk Operating Statement operating statements Operating Unit operation de sauvetage Operation financiere Operation Iraqi Freedom operation of law Operational Audit			Operating Curve Management Operating cycle Operating Cycles Operating Data Processing operating delay Operating Department Assistant Operating department practitioner Operating Discipline Management System Operating Division Operating Documents Preliminary Review Form Operating Earnings Operating Earnings After Depreciation Operating Engineers Certification Program Operating Engineers Federal Credit Union Operating Engineers Training Institute of Manitoba Operating Engineers Training Institute of Ontario Operating Envelope Operating environment Operating environment Operating Environment Architecture Operating Environment Change Request Operating Environment Segment Specification Operating Environment Update Release Operating Equipment Effectivity Operating Expenditures per Pupil Operating Expense Operating Expense Control Operating Expense Control operating expense escalation Operating Expense Ratio Operating Expense Ratio Operating expenses Operating expenses Operating expenses Operating expenses Operating expenses Operating Expenses & Maintenance Operating Experience Operating Experience Data Base Operating Experience Report/Review Operating exposure Operating Facilities and Services Agreement Operating Facility Operating Facility Change Order operating field operating field operating field operating field Operating Force operating forces Operating Free Cash Flow Operating frequency Operating Fund Financing Program Operating Funds Flow Operating Ground Equipment Operating Ground Equipment/Real Property Installed Equipment