To get Operating Expense (OPEX), operating expenditure, operational expense, operational expenditure you use the formula Gross Profit – Operating Costs. Operating Expense is the bottom line structural cost of your business.It is what it costs to undertake normal business operations. This includes costs such as rent, marketing, payroll, research and development. When a business is facing headwinds, its owners and exacutives can restructure the business by making changes to its operating costs.
Disclaimer
Kindly note that this is not financial advice.Our website services, content and products are for general informational and educational purposes only and is not a substitute for professional advice. We remind our readers to be careful with their money.You should NOT rely upon the information or opinions you read. Preferably, you should use what you read here as starting points for doing independent research on companies, products and investing techniques. Then judge for yourself the worthiness of the material that has been shared in our website.
« Back to Financial Terms Dictionary