BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Common operating costs in addition to COGS may include rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development. Operating costs can be found and analyzed by looking at a company’s income statement.

Detailed explanation-2: -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-3: -Operating costs include the cost of goods sold (COGS) and operating expenses (OPEX). They also include depreciation and amortization. Operating costs don’t include interest expenses (from debt service, for example) or taxes (on income or property, for example).

Detailed explanation-4: -Some of the most common operating expenses include rent, insurance, marketing, and payroll.

Detailed explanation-5: -Operating expenses are the overhead costs a business incurs to maintain its day-to-day operations. Examples include the non-manufacturing component of payroll, rent, office supplies, and utility costs.