![]() ![]() Of course, most of the time, cutting back on costs is great for your company as long as you make sure you don't cut back on those costs that are directly linked with your business generation efforts. The basic principle is that the less you have of it, the better for your business. These expenses include labor, rent, depreciation, and other costs required to operate a. Gains (losses) from the write-off of financial assets measured at. Other costs to consider when investing in a. Operating Expenses (OpEx) represent the indirect costs incurred by a business to continue running its day-to-day operations. Operating expenses are costs involved in running a business. For example, you can find in Opex, the rent of office space, the salaries of sales representatives, the marketing program costs, and actually, any other cost, as long as it does not relate to the production of goods. To calculate operating expense, you simply add all of your operating expenses together. Costs excluded from operating expenses include mortgage payments, capital expenses, and depreciation expenses. ![]() ![]() To summarize the concept briefly, Opex are another category of costs, but this time, used to run the day-to-day operations of the company, and not related to the production of goods. This section is commonly called Opex, as a short name for Operating Expenses. In this chapter, we will be discussing the last big section of the P and L, which covers all of the operating expenses. ![]()
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