BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Operating and Non-Operating Expenses Those expenses which are the main part of operations and are related to the company’s core operations are termed operating expenses. For example; salaries and wages, depreciation, rent and leases, selling expenses, etc.

Detailed explanation-2: -What Is an Operating Expense? An operating expense is an expense that a business incurs through its normal business operations. Often abbreviated as OpEx, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Detailed explanation-3: -Are Wages Operating Expenses? Administrative expenses such as full time staff salaries or hourly wages are considered operating expenses for a business. The specific costs for hiring labor to produce a product is calculated separately, under cost of goods sold, and are not operating expenses.