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Operating Expenses | Definition & Examples

Operating Expenses | Definition & Examples

168K viewsDec 29, 2015

Study.comTara Schofield

Assume a company’s activity-based costing system included threeexpenses: Vehicle operating expenses, 300,000; Vehicledepreciation,160,000; and Customer service salaries, 210,000.These costs were consumed by four activities as follows: TravelDeliveries Customer Service Other Total Vehicle operating expenses45% 40% 10% 5% 100% Vehicle depreciation 40% 50% 0% 10% 100%Customer service salaries 20% 30% 35% 15% 100% How much of thecompany’s total costs should not be allocated to customers whenanalyzin

Assume a company’s activity-based costing system included threeexp…

A pump costing 18000 is expected to have operating disbursements of 6500 the first year. The machine's resale value is expected to decline by 15 % a year, while its operating expenses are expected to increase by 500 a year. If the MARR is 20 %, determine the economic life and the corresponding annual equivalent cost. | Numerade

A pump costing 18000 is expected to have operating disbursements …

Net Operating Income (NOl): NOl represents the income from the property after operating expenses, but before debt service and taxes. Formula: NOI = Gross Rental Income - Operating Expenses Example: If a property earns 100k in rental income and has 30k in operating expenses, the NOl would be 70k 2. Cap Rate (Capitalization Rate): The cap rate indicates the return on investment based on the current market value of the property. Formula: Cap Rate = Net Operating Income (NOl) / Current Market Value

Net Operating Income (NOl): NOl represents the income from the pr…

145 views5 months ago

FacebookImtaz Ahmed

How To Calculate Operating Costs, and Increase Cash Flow

How To Calculate Operating Costs, and Increase Cash Flow

ForbesLouis Mosca

Operating Income

Operating Income

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Operating Expense Definition and How It Compares to Capital Expenses

Operating Expense Definition and How It Compares to Capital Expen…

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Operating Expense Ratio (OER): Definition, Formula, and Example

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Grouping of information in the financial statements

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