"Other Operating Expenses" in an income statement refer to costs incurred by a business that are related to its core operations but do not fall into more specific categories like Cost of Goods Sold (COGS), Selling, General, and Administrative (SG&A) expenses, or research and development (R&D).
These expenses are typically recurring and necessary for the day-to-day functioning of the business, but they might not be directly tied to the production or sale of goods/services.
Common examples of Other Operating Expenses include:
- Rent expense (for office or administrative spaces)
- Utilities (for office or administrative spaces)
- Depreciation and amortization (for operating assets)
- Insurance expense
- Repairs and maintenance (for operating assets)
- Legal and accounting fees
- Travel and entertainment expenses
- Office supplies
- Bad debt expense
- Miscellaneous operating expenses
The specific items categorized under "Other Operating Expenses" can vary between companies and industries, depending on their nature and materiality. The goal is to provide a clear and accurate picture of a company's operational costs.
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