![]() Attorney fees: These refer to the cost of legal services associated with your business, including filing incorporation papers or defending against a lawsuit.Accounting fees: Fees paid to an accountant or bookkeeper for services such as tax preparation, financial statement preparation, and bookkeeping.Research: costs associated with market research, product development, and similar activities. ![]() (e.g., a wholesale license, an eCommerce business license, and even a license for selling alcohol online) License fees: state and local licenses and permits required to operate your business.Travel expenses: airfare, lodging, car rental, and other travel-related costs incurred while conducting business.Here is a closer look at 16 of the most common types of operating expenses: Operating expenses include all the costs associated with running a business daily. A positive cash flow indicates that a company generates more cash than spending, while a negative cash flow means the opposite. The cash flow from operating activities can be either positive or negative. The cash flow from operating activities measures a company’s ability to generate cash from its day-to-day operations, which is included in the statement of cash flows. Operating activities include selling goods, manufacturing, rendering services, etc. Operating activities are the core activities that generate revenues and incur expenses for a company. Examples of fixed costs include rent, salaries, and insurance. Examples of variable costs include raw materials, commissions, and shipping fees associated with dropshipping, overnight shipping, and expedited shipping. Fixed costs remain constant regardless of production levels or sales volume. Variable costs are those that fluctuate based on production levels or sales volume. Operating expenses can be divided into two categories: variable costs and fixed costs. Operating expenses can significantly impact a company’s bottom line, so businesses must carefully track and manage them. Many businesses outsource certain operating expenses, such as accounting or customer service, to save on costs. These include rent, utilities, labor, insurance, and other daily expenses. Operating expenses (OPEX) are the costs associated with running a business.
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