Total Operating Expenses are expenses that a business incurs for the things required to run the company day-to-day. Operating Expenses include rent, equipment, inventory costs, marketing, labor costs, insurance, duties and funds allocated to research and development.
Operating expenses reveal important insights into management and company costs. A thorough study of operating expenses can give investors a better understanding of how much money and flexibility a company has to run on a day-to-day basis.
Different sources may show different numbers for Total Operating Expenses because it’s possible those sources count it only as SG&A. In other words, they do not include the cost of goods sold as an operating expense.