Operating Expenses Operating expenses include everything from your phone bill to a business license and especially employee wages. In the pizza parlor example, rent, supplies, marketing, liability ...

The total operating expense costs are $18,000. $61,000 - $18,000 = $43,000 When the total revenue is subtracted from the total operating expenses, the remaining net operating income is $43,000 ...

It does not include operating expenses (such as labor), which are listed in the next section. For instance, a burger restaurant would include the cost of beef in its COGS, though not the wages of ...