Editing Operating expense (section)

==Overview==
In [[business]], an operating expense is a day-to-day [[expense]] such as [[sales]] and [[Business administration|administration]], or [[research & development]], as opposed to [[Production (economics)|production]]. In short, this is the [[money]] the business spends in order to turn [[inventory]] into [[throughput (business)|throughput]].

On an [[income statement]], "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year.

In [[throughput accounting]], the [[cost accounting]] aspect of the [[theory of constraints]] (TOC), operating expense is the [[money]] spent turning [[inventory]] into [[throughput]].<ref>Goldratt, E. M., & Cox, J. "The Goal: A Process of Ongoing Improvement" (Rev. ed.). (1986)., p. 61.</ref> In TOC, operating expense is limited to costs that vary strictly with the quantity produced, like raw materials and purchased components. Everything else is a [[fixed cost]], including labour (unless there is a regular and significant chance that workers will not work a full-time week when they report on their first day).

In a [[real estate]] context, operating expenses include costs associated with the operation and maintenance of an income-producing property.

Operating expenses include:
       
* salary and wages
* accounting expenses
* [[license]] fees
* maintenance and repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care
* advertising
* office expenses
* supplies
* attorney fees and legal fees
* utilities, such as telephone
* insurance
* property management, including a resident manager
* property taxes
* travel and vehicle expenses
:'''Travel expenses''' are defined as those incurred in the event of travel required for professional purposes.
::For this purpose, “travel” is defined as the simultaneous absence from the [[house|residence]] and from the regular place of [[employment]]. It is prompted by professional or company purposes and likely does not concern the traveler’s private life, or concerns it only to a small degree. Travel expenses include travel costs and fares, accommodation expenses, and so-called additional expenses for [[meal]]s.
* leasing commissions