Accounting Dictionary

Operating Expenses

Operating expenses are the expenses you incur to run your business.

John paid $4000 for inventory, $9000 for salesmen, and $400 to consult with a financial planner about investing the company profits in stock. His operating expenses are $13,000 ($4000 + $9000). The $400 is not an operating expense because it has nothing to do with running his store.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top