Impressive Examples Of Operating Expenses On Income Statement

Examples of Operating Activities Examples of a retailers main operating activities involve the buying and selling of merchandise or goods.

Examples of operating expenses on income statement. Interest expense interest income and other non-operational revenue sources are not considered in computing for operating income. Total operating expenses 147 000 527 Total net profit 22 000 79 Note. Encompassed by a red border Amazons operating expenses include the cost of sales fulfillment marketing general and administrative technology and content and other operating expenses.

Operating Income Other Expenses Other Gains Pre-Tax Income. General and Administrative Expenses. List of Operating Expenses.

For instance the operating expense incurred by 3M Corporation includes selling general and administrative expense and Research and Development Expense. Gross Profit Operating Expenses Operating Income. The total revenue minus total expenses which gives the profit or loss.

The end goal of the income statement is to show a businesss net income. Paying a worker is an operating expense. Your businesss pre-tax income.

Essentially operating expenses are the costs of keeping the business running beyond direct materials and labor. Operating expenses are the costs that have been used up expired as part of a companys main operating activities during the period shown in the heading of its income statement. Revenue Cost of Revenue Gross Profit.

Any cost that it takes to keep a business running for a normal day week or month is an operating expense. So is buying toilet paper for a bathroom. Operating expenses of the business are those expenses incurred while performing the principal business activity and the list of such costs includes production expenses like direct material and labor cost rent expenses salary and wages paid to administrative staff depreciation expenses telephone expenses traveling expenses sales promotion expenses.