---
title: "Operating expenses"
description: "Operating expenses — The costs of running the business other than the direct costs of revenue — selling, general and administrative, and research and development. They sit between gross profit and operating income."
canonical: "https://lopifi.com/glossary/operating-expenses"
---

# Operating expenses

> Operating expenses — The costs of running the business other than the direct costs of revenue — selling, general and administrative, and research and development. They sit between gross profit and operating income.

Source: https://lopifi.com/glossary/operating-expenses
Part of: Lopifi — Planned: US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is operating expenses?** In accounting, operating expenses means the costs of running the business other than the direct costs of revenue — selling, general and administrative, and research and development. They sit between gross profit and operating income.

## Also known as

- Opex

## Words this system refuses for it

- cost of revenue
- capex (an asset, not a period cost)

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/lexicon)
- **Rendered by:** [profit-and-loss](https://lopifi.com/md/components/profit-and-loss)
- **Related:** operating-income, gross-profit, revenue