Operating expenses refer to the costs incurred in operating a business on a day-to-day basis. These can include salaries and wages, utilities, rent, depreciation, training and development, advertising and marketing, legal fees, and travel expenses. Operating expenses can vary depending on the type of business and its size, but they all serve the same purpose: keeping the business running smoothly. It’s essential for businesses to monitor their operating expenses closely, as they can quickly add up and affect profitability. By understanding their operating expenses and taking steps to reduce them, companies can maximize their profits and remain competitive.