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An operating expense [a] is an ongoing cost for running a product, business, or system. [1] Its counterpart, a capital expenditure (capex), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves capex, and the annual paper, toner, power and maintenance costs ...
Operating costs or operational costs, are the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility. They are the cost of resources used by an organization just to maintain its existence.
In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses. Operating income and operating profit are sometimes used as a synonym for EBIT when a firm does not have non-operating income ...
Operating income is a value that is used to demonstrate a company's profitability after it has deducted other costs such as cost of goods sold (COGS), employee wages and other operating expenses.
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, pronounced / iː b ɪ t ˈ d ɑː /, / ə ˈ b ɪ t d ɑː /, or / ˈ ɛ b ɪ t d ɑː /) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.
Operating costs are most often the largest component of the revenue requirement, and the easiest to determine. Occasionally, operating expense items have caught the attention of regulatory agencies and courts, and these items have been examined more closely. Regulators must make two determinations. First, they must determine which items should ...
The operating budget contains the revenue and expenditure generated from the daily business functions of the company. [1] [2] It concentrates on the operating expenditures — the cost of goods sold , the cost of direct labour and direct materials that are tied to production; as well as the overhead and administration costs tied directly to ...
e. Throughput accounting (TA) is a principle-based and simplified management accounting approach that provides managers with decision support information for enterprise profitability improvement. TA is relatively new in management accounting. It is an approach that identifies factors that limit an organization from reaching its goal, and then ...