Payments for general expenses, contractual services, printing, communication, travel, data processing, equipment, and other expenses occurring in the regular operations of a program. Departmental Codes, Expenditure Codes, Revenue Codes.
Expense necessary for the maintenance of a piece of real property and to insure its continued ability to produce income. Loan payments, depreciation and capital expenditures are not considered operating expenses.
The costs required to maintain the operations of an investment. For most investment properties, operating expenses would include insurance, maintenance, basic repairs, janitorial, utilities and scavenger services. However, operating expenses would exclude closing costs, debt servicing, capital improvements and the cost of upgrades. For more information, see the "Real Estate Investment Analysis Tools" article in the "Real Estate Investing" section.
In throughput accounting, the cost accounting aspect of Theory of Constraints (TOC), operating expense is the money spent turning inventory into throughput. In TOC, operating expense is limited to costs that vary strictly with the quantity produced, like raw materials and purchased components. Everything else is a fixed cost, including labour unless there is a regular and significant chance that workers will not work a full-time week when they report on its first day.