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Operating expense
Operating expenses are costs associated with running a company. These expenses are also called general & administrative (G&A) expenses or selling, general, & administrative (SG&A) expenses.
Operating income
Operating income is sales minus cost of sales (cost of goods sold), and minus general and administrative (G&A) expenses. Operating income is also called operating profit.
Operating income excludes the financial items interest income, interest expense, and dividend income. Operating income also is calculated before income taxes are deducted.
Operating loss
When cost of sales and operating expenses exceed revenue, the company has an operating loss. See operating income.
Operating profit
See operating income.
Financial Terms Dictionary
Jeff Mankin teaches financial literacy and Excel. He is the founder of Finally Learn.
