Financial Terms “O”


Financial Terms Dictionary

O


Operating Expenses

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 (or cost of goods sold), and minus general and administrative (G&A) expenses. 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

Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

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Expense

What is an expense? Expense is a cost to operate a business to produce revenue. In accounting, an expense occurs when an asset is used. This could include a cash outflow or consuming an...