What is the definition of Operating Expenses?

Operating Expenses is an accounting term which refers to the amount a company spends on its general business operations. All payments and income associated with the general running of the business are part of Operating Expenses, i.e:

• Cost of Goods Sold
• Wages
• Research & Development

Operating Expenses are found on the Income Statement.

Operating cost formula : 

Operating cost=Cost of goods sold+Operating expenses