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What are the operating expenses and operating incomes ?

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تم إضافة السؤال من قبل Wasif ali
تاريخ النشر: 2016/04/30
Mujeeb Alam
من قبل Mujeeb Alam , Accountant , Copri Construction Enterprises Est.

Operating income, or EBIT, is important because it is an indirect measure of efficiency. The higher the operating income, the more profitable a company's core business is.

 

Operating expenses are the costs associated with a company's main operating activities and which are reported in its Income statements.

  • maintenance and repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care
  • advertising
  • office expenses and supplies
  • attorney legal fees
  • utilities
  • insurance
  • property taxes
  • travel and vehicle expenses
  • leasing commissions
  • salary and wages
Source: Boundless. “Operating Expenses, Non-Operating Expenses, and Net Income.” Boundless Accounting. Boundless, 21 Jul. 2015. Retrieved 30 Apr. 2016 from https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/understanding-the-income-statement-84/operating-expenses-non-operating-expenses-and-net-income-383-4871/

 

  • license fees
  • maintenance and repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care
  • advertising
  • office expenses and supplies
  • attorney legal fees
  • utilities
  • insurance
  • property taxes
  • travel and vehicle expenses
  • leasing commissions
  • salary and wages
Source: Boundless. “Operating Expenses, Non-Operating Expenses, and Net Income.” Boundless Accounting. Boundless, 21 Jul. 2015. Retrieved 30 Apr. 2016 from https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/understanding-the-income-statement-84/operating-expenses-non-operating-expenses-and-net-income-383-4871/

Mohammed Shahsad
من قبل Mohammed Shahsad , Freelance Travel Consultant , Freelancing

Operating expenses and operating incomes are the direct expense and income incurred in the operation of the firm. 

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