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#Daily expenses incurred in the operation of a business professional

#Daily expenses incurred in the operation of a business professional

Travel expenses are defined as those incurred in the event of travel required for professional purposes.įor this purpose, “travel” is defined as the simultaneous absence from the residence and from the regular place of employment.

property management, including a resident manager.

maintenance and repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care.

In a real estate context, operating expenses include costs associated with the operation and maintenance of an income-producing property. Everything else is a fixed cost, including labour (unless there is a regular and significant chance that workers will not work a full-time week when they report on their first day). In TOC, operating expense is limited to costs that vary strictly with the quantity produced, like raw materials and purchased components.

In throughput accounting, the cost accounting aspect of the theory of constraints (TOC), operating expense is the money spent turning inventory into throughput.

On an income statement, "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year. In short, this is the money the business spends in order to turn inventory into throughput. In business, an operating expense is a day-to-day expense such as sales and administration, or research & development, as opposed to production, costs, and pricing.