Operating Expenses

Operating Expenses is the sum of all the expenses associated with the ongoing operations of the company.   Examples of operating expenses include manufacturing labor, materials, overheads such as administrative salaries, sales and marketing expense, research and development, and office supplies.  Management attempts to keep operating expenses as low as possible in order to maximize profits.  Operating expenses can be considered the essential expenses incurred by a company in order to keep the business running.

The operating expenses for a company can be found on the income statement.