Printing & Stationery: This is a routine exp incurred daily in the office premises on printing of documents etc.read more, plant & machinery, and furniture and fixtures of the company to keep the same in good condition. Plant and machinery, land and buildings, furniture, computers, copyright, and vehicles are all examples. Repairs & Maintenance: It refers to the periodic maintenance of the fixed assets Fixed Assets Fixed assets are assets that are held for the long term and are not expected to be converted into cash in a short period of time.read more, conveyance, transport, cleaning charges, etc. It is unreasonable to issue a check for such small expenses and for managing the same custodians are appointed by the company. Office Admin Exp: It refers to the daily admin expense of the premises like stationary, petty cash Petty Cash Petty cash means the small amount that is allocated for the purpose of day to day operations.It is a monthly expense and normally fixed in nature. Utility Bills: It refers to electricity, internet charges, mobile bills, etc.Since this expense is incurred for the benefit of the employees, it’s an operating expense for the company to keep them motivated by providing safety and security. read more of the employees for any kind of medical emergency. Insurance: It refers to the amount paid to the Insurance company for the group insurance Group Insurance Group Insurance is a type of insurance which covers a group of people who are related to each other by some defined criteria i.e., Members of Society or any professional association, employees of an entity, employees working under the same employer etc.It is the type of cost which is not dependent on the business activity. Generally incurred every month and is a fixed cost for the company Fixed Cost For The Company Fixed Cost refers to the cost or expense that is not affected by any decrease or increase in the number of units produced or sold over a short-term horizon. Rent: It refers to the rentals paid to the landlord for using the premises for business use.These are the day to day expenses of the company to run the business operations smoothly and includes the below mentioned:
It forms part of the CTC to the employee and can be claimed from the company. House Rent Allowance: It refers to the allowance given by the employer to the employee to stay in a house on rent.Salaries – Salaries paid to the employees of the company and is one of the most critical expenses for any company being fixed in nature.Most Common Examples of Operating Expense (OPEX) Compensation based operating expenses (OPEX) Let us discuss each one of them in a bit more detail. Because it is indirectly related to the production and delivery of goods and services, it is classified as an indirect cost. This includes expenses incurred on advertising, distribution and marketing. Selling Expenses Selling Expenses The amount of money spent by the sales department on selling a product is referred to as selling expenses.that are related directly to the manufacturing and production of various products of the company. Direct Material Cost Direct Material Cost Direct Material Cost is the total cost incurred by the company in purchasing the raw material along with the cost of other components including packaging, freight and storage costs, taxes, etc.read more like depreciation and amortization to the income statement.īelow are the top 15 most examples of operating expenses (OPEX) – It involves expenses such as depreciation. Operating Expense is the Sum total of all the expenses excluding the cost of goods sold, interest, taxes, and non-cash expenses Non-cash Expenses Non-cash expenses are those expenses recorded in the firm's income statement for the period under consideration such costs are not paid or dealt with in cash by the firm. Generally referred to as “OPEX Cost,” and is the primary concern for the management of the company to reduce the same without affecting the product quality and to stay ahead of the competitors. read more refers to the money spent on running the business operations of the company smoothly. Therefore, they are readily available in the income statement and help to determine the net profit. In simple terms, Opex Opex Operating expense (OPEX) is the cost incurred in the normal course of business and does not include expenses directly related to product manufacturing or service delivery. The examples of the Operating expenses are legal fees, rent, depreciation, office equipment, and supplies, Accounting expenses, insurance, repairs and maintenance expenses, utility expenses like electricity, water, etc, telephone and internet expenses, property taxes, payroll tax expenses, pensions, advertisement expenses, entertainment costs, travel costs, marketing, commissions, direct mailing expenses, bank charges and many more.
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