Operating Expenditures

Operating expenditures, or operating expenses, are the ongoing costs a business incurs to run its daily operations. These include expenses like salaries, rent, utilities, supplies, and maintenance. They are different from capital costs, which relate to big investments like equipment or property. Operating expenses are essential for keeping the business functioning and are typically recorded on financial statements to assess profitability. Managing these costs effectively helps a company remain financially healthy and competitive in its industry.