operating expense

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Related to Operating Expense Control: Operating Expense Ratio

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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The affirmation reflects ACV's improved operational performance in fiscal 2018 (unaudited), which is attributed to various initiatives aimed to improve their financial performance, including enhanced marketing efforts, operating expense controls, and payor mix improvement initiatives.
Now, with the advent of software as a service (SaaS), small and midsized businesses can afford to automate operating expense controls, and they are beginning to adopt this technology at a rapid pace.
"The company's objectives for increased revenues and operating expense controls are on target," says chairman Robert Martini.
He says that, although the gross profit margins rate was slightly below that of the prior year, the contribution from the increase in sales volume and effective operating expense controls produced a significant improvement in overall operating earnings.

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