Join the Vareto Visionaries, a curated community for strategic finance leaders | Apply now
Costs that are directly related to a company’s commercial or operational activities are categorized as OPEX or operating expenses. These expenses are crucial for carrying out the company’s operations smoothly and profitably. Operating expenses are essential and mostly unavoidable for businesses.
Examples of operating expenses include employee compensation, marketing expenses, travel costs, inventory, rent, taxes, etc.
Operating expenses are important to carry out business functions. However, companies must ensure that these do not exceed their total revenues, or else there will be no profits. Costs related to people, transportation, and travel are common operating expense areas that companies must examine to identify cost-saving opportunities.
Get Started
Give your finance team the tools they deserve so your company can make better, faster operational decisions.
© Copyright 2023 Vareto Inc. All rights reserved.