Operating expenses

Operating expenses here are selling and business-running expenses shown outside cost of goods sold in the chosen income-statement classification. Examples include advertising, administration and shop rent. Classification needs consistency; financing expenses form another category.[1]

Order analysis often omits some operating expenses. Show which costs are directly assigned to orders and which are recognised later at channel or company level. Operating does not mean variable: both a fixed software subscription and an order-dependent selling charge can support ordinary business activity.