Operational expenses are essential costs that a business incurs in order to produce its goods or services. They include ongoing operational costs like salaries and benefits, rent, utilities, production costs, insurance and administrative costs. The goal of managing operational expenses is to reduce the cost of producing goods and services without compromising the quality. Operational expenses are monitored closely to ensure they are in line with the company’s budget and expectations. By keeping track of your operational expenses you can stay on top of your finances and ensure your company is running as efficiently as possible.