operating expenses

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sriram

sriram (Querist)
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04 December 2008 hi

What is a operating expenses and operating income

Rajdeep Pawar

Rajdeep Pawar (Expert)
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04 December 2008 Income & expenses from/for Operations (Normal Business Activities) of the company.

CA. AMIT AGARWAL

CA. AMIT AGARWAL (Expert)
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04 December 2008 Operating expenses are part of the overhead costs attached to selling products on the market. They are not necessarily directly connected to the cost of the specific product being sold but must be included when figuring the operating expenses of a company. These include fixed costs of salaried employees (administration, sales, etc.) and variable costs (labor, research and development, etc.). Operating expenses are found on the income statement.

Operating income determines a company’s earning power from ongoing operations. This is the figure equal to earnings before deduction of interest payments and taxes. This is another figure commonly found on the income statement. This figure is also commonly referred to as operating profit or earnings before income and taxes (EBIT). Operating income is a direct result of a company’s efforts to turn a profit

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