Definitions for "OPERATING EXPENSES"
(1) As used in the accounts of governmental enterprises, the term means those costs which are necessary to the maintenance of the enterprise, the rendering of services, the sale of merchandise, the production and disposition of commodities produced, and the collection of enterprise revenues. (2) The term is also sometimes used to describe expenses for general governmental purposes.
Those expenses, other than the cost of goods sold, which are incurred in running a business.
Operating expenses for all non-farm businesses are defined as the cost of utilities, annual depreciation of machinery and other business property, amount of net inventory decrease, wages and salaries paid to employees, cost of supplies and raw materials, business taxes, and interest on debts. For farms, they are defined as the cost of feed, tools, livestock purchases, wages to farm workers, and depreciation of equipment or buildings. They do not include capital expenditures such as purchase of land or machinery.
The periodic expenditures necessary to maintain the flow of income from a property.
The periodic expenditures necessary to maintain the real property and continued production of the effective gross income, assuming prudent and competent management.
Cash expenditures required to maintain property in sufficient condition to generate effective gross revenue.
The money required the system to convert inventory intothroughput.
The money the required for the system to convert inventory into throughput.
Keywords:  lease, red
Operating in the red Operating lease