ENTREPRENEURSHIP

Detailed explanation-1: -The term overhead costs refers to the fixed operating costs businesses must pay regardless of their output. These are generally much the same for all companies. They include: Rent/mortgage.

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: -An expense is a cost that businesses incur in running their operations. Expenses include wages, salaries, maintenance, rent, and depreciation. Expenses are deducted from revenue to arrive at profits. Businesses are allowed to deduct certain expenses from taxes to help alleviate the tax burden and bulk up profits.

Detailed explanation-4: -Operating expenses can be both fixed and variable. Some of the most common operating expenses are those related to compensation as well as sales and marketing. Certain companies also include the cost of goods sold as an operating expense, as it often helps them access additional financing for the next fiscal year.

Detailed explanation-5: -The cost of sales measures expenses that contribute to the production of a product or service, whereas operating expenses measure how much a company spends on overhead costs. The cost of sales directly impacts a service or product, whereas operating expenses support the overall business.