Operational Expenses


  • Ongoing costs that accumulate due to normal business operations. Operational expenses are ongoing, as opposed to one-time capital expenditures. Employee wages are an example of operational expenses, as are maintenance and repair costs, insurance costs, advertising costs, property taxes, and accounting expenses. Businesses try to minimize their operational expenses without negatively affecting their bottom line in order to maximize profits. Also known as an "operating expense," "operating expenditure," "operational expenditure" or "OPEX."

non-recourse debt, non-recourse loan


Related Terms and Acronyms

  • Business (busn) Abbreviation,
    • A company, either for-profit or non-profit.
    • Commercial, industrial or professional activities undertaken by an entity.
    • Economic activities of a given type.
  • Business Interest Expense Definition,
    • Interest acquired in business operations can be deducted as a business expense.
  • Capital Expenditure Definition,
    • The cost of making an improvement to a property.
  • Cash Flow Definition,
    • The money an investment produces after subtracting cash expenses from income.
  • Commerce Definition,
    • The systems and activities that impact business and trade within a nation and abroad.
  • Expense Definition,
    • Costs incurred through a business's operations.
  • Fixed Expenses (FE) Acronym,
    • Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
  • Net Operating Loss (NOL) Acronym, Very Important,
    • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
  • Operating Cash Flow (OCF) Acronym,
    • The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • Other Income/Expenses Definition,
    • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
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