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Operating Expense
(redirected from Operating Expense Control)

   Also found in: Dictionary/thesaurus, Wikipedia 0.01 sec.
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.

Related Terms:
Expense Ratio
Operating Cash FlowOCF
Operating Income
Operating Margin
Operating Profit



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With the advent of SaaS, small and mid-sized businesses can afford to automate operating expense controls and are beginning to adopt this technology at a rapid pace.
Improved North American operating results, ongoing growth in Europe, and strong operating expense control drive second-quarter 2009 performance.
The increase was the result of an improvement in mix of private label and perishable sales and a continued focus on operating expense controls.
 
 
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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
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Operating Expense Control
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Operating Expense Ratio
Operating Expense Ratio
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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
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Operating Force
operating forces
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Operating frequency
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Operating Funds Flow
Operating Ground Equipment
Operating Ground Equipment/Real Property Installed Equipment
operating handle
Operating Heat Flux
 
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