Operating costs can be much higher, depending on the type of business. expenses for accounting and legal support.employee benefits such as health insurance.Examples of such expenses for a store may include the following items: The store keeps track of operating expenses. Variable operating costs include the cost of delivering the goods to the buyer, the cost of packaging the goods, payment system services, advertising costs, etc.Īn enterprise, for example, a pet store, incurs operating expenses in addition to expenses that are an integral part of the store’s main activity – the sale of pets and pet products. The variable operating costs of an online store in the financial model are defined as a percentage of the revenue of the store or product category. The variable operating costs of an online store depend on the amount of total revenue from the sale of goods or the revenue of a particular product category.In the financial model, fixed operating costs are defined as a fixed amount. For example, renting an office and warehouse is an ongoing operating expense. The fixed operating costs, for example, of an online store do not depend on the volume of sales of goods and are constant over a certain period of time.Operating expenses can be classified as follows: These expenses are recorded in an entity’s Income statement during the period that they have occurred rather than when the company paid. Oftentimes, the term operating expenses is abbreviated to OPEX. These are the costs of doing business beyond the costs of goods sold and don’t relate to the production of a product. Operating expenses, also known as unavoidable expenses, are expenses that the company has to incur for the smooth running of its day-to-day business activities. It is the nature, conditions of performance, and the direction of work of a particular organization that affect the division of funds into -income and expenses. One of the important parts of accounting is the company’s income and expenses.

Examples of operating expenses