Financial Terms “O”

Financial Terms Dictionary


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

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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...