![]() Operating expenses include rent, utilities, inventory cost, payroll, employee benefits, equipment, legal fees, stationery expenses, insurance, pension, advertising and marketing. This does not include any expense that is not related to the core operations. What Is Included in Operating Expenses?Īn operating expense is an expense that is incurred to sustain the daily operations of the organization. ![]() When the business operates to earn profits, it is permitted to deduct the operating expense as per the regulations of the IRS. The operating expense does not include the expenses incurred by the organization for expenses that are unrelated to its core operations. The daily operations of the business incur an expense that is called the operating expense. One of the most important terms used in accounting is operating expenses. When you understand accounting terms, it makes it so much easier to get a grip on the financial aspects of running your business.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |