MANAGEMENT

Detailed explanation-1: -What are Utilities Expenses? Utilities Expenses are costs incurred by the company for using the services of public utility companies like sewage, electricity, waste disposal, water, broadband, heating, and telephone. Usually, these costs make up a significant portion of the opex.

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: -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-4: -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-5: -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.