Some Categories Related To The Operating Expenses

The complete expenses of a company are divided into some major heads. These major heads are including numerous sub categories. Similarly, the opex (operating expenses) is including different types of factors and categories. These categories are completely based on the types of expenses and some additional things. Following explanation is based on some basic and main categories of the operating expenses.

Maintenance

The companies are spending lots of money on the maintenance of different types of things. Some individuals think that these types of funds are considered as the capital expenditure. In reality, the company needs to spend funds on maintenance due to the business operations. Due to all these factors, these funds those are spent by the company are counted as the opex.

Utilities

There are different types of services and utilities provided by the company to their employees. Expenses those are made by individuals for providing these types of utilities that are treated under the head of operating expenditures. Mainly these types of utilities are –

  • Free internet
  • HVAC system
  • Electricity
  • Water

These ones are the common examples of all these factors.

Insurance

Almost all companies are considering the way of insurance of their employees. In this particular way, they are trying to make sure the financial security related to the employees. There are some specific insurance products available for the companies. The money which is paid by the company as the insurance premium is considered as the opex for the company.

Tax & duties

There are different types of additional expenses paid by the companies such as – tax & duties. These expenditures are fluctuating on the basis of different things. With it, the money which is paid by the company is mentioned under the operating expense head.

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