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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 income formula](https://finallylearn.com/wp-content/uploads/2021/09/operating-income-formula-1024x278.png)
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
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Jeff Mankin teaches financial literacy and Excel. He is the founder of Finally Learn.