BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Operating expenses-also known as selling, general and administrative expenses (SG&A)-are the costs of doing business. They include rent and utilities, marketing and advertising, sales and accounting, management and administrative salaries.

Detailed explanation-2: -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: -Operating expenses do not include cost of goods sold (materials, direct labor, manufacturing overhead) or capital expenditures (larger expenses such as buildings or machines).

Detailed explanation-4: -The amount of Utilities Expense for the sales function is classified as a selling expense and the amount used for administration is classified as an administrative expense.