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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.
Necessary expenses for the normal day-to-day running of a business or income-producing property. It does not include financing expenses, depreciation, or capital expenditures.