Total Operating Expenses

What is Total Operating Expenses?

Total Operating Expenses are expenses that a business incurs for the things required to run the company day-to-day. Operating Expenses include rent, equipment, inventory costs, marketing, labor costs, insurance, duties and funds allocated to research and development.

Why are Total Operating Expenses important?

Operating expenses reveal important insights into management and company costs. A thorough study of operating expenses can give investors a better understanding of how much money and flexibility a company has to run on a day-to-day basis.

Why can Total Operating Expenses differ from other sources?

Different sources may show different numbers for Total Operating Expenses because it’s possible those sources count it only as SG&A. In other words, they do not include the cost of goods sold as an operating expense.

How is Total Operating Expenses calculated?

Total Operating Expenses is the sum of Selling, General & Administrative Expenses, Total and Cost of Goods Sold.