operating expenses


Non-labor and non-production expenses involved in the day-to-day operation of a business, including consumables such as oils and lubricants used in the production process. Examples include utilities, rent, supplies, and janitorial contracts among others.

Use operating expenses in a sentence

The operating expenses were low as the business only needed a small office and a few diligent workers to reach goals.

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The company's operating expenses included the utilities, like lighting and running water, the employees' salaries, and the cost of transportation of the products.

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After the audit, the company was forced to layoff several employees when it was determine that the company's operating expenses were greater than what they recieved from customers.

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operating expense (OPEX) operating in the red