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| Name | Operating Expenses Explained - What Does Cost Of Operations Mean? | Income Statement Explained |
| Video Uploader | Video From David Marquez - Personal Finance & Investing |
| Upload Date | This Video Uploaded At 21-07-2022 22:15:00 |
| Video Discription | This is the fourth video in a series where we'll be breaking down and learning how to read an income statement going line by line. In this video we're going to talk about operating expenses alternatively known as the cost of operations. Previous video (Gross Profit Explained): https://youtu.be/Sk0pIL4ubz0 Cost of operations breaks down into two distinct parts (for our purposes): 1. Selling, general, and administrative expenses: Say you run a company that mines gold. Even if your primary operations are based on mining, processing, and selling the gold you mine, you will probably still employ people in Information Technology, Marketing, Accounting, and Human Resources departments who are not necessarily directly involved with the production and sale of gold, but are still essential for the day-to-day operations of your company. The salaries of these people, as well as the offices, supplies, training, and benefits they require are part of your selling, general, and administrative expenses. 2. Research & Development R&D is generally associated with developing new products, techniques, patents, and technologies to be either used or sold by a given company. These expenses may be greater for some sectors such as the pharmaceutical and information technology sectors. The addition of the two items listed above gives you your total operating expense, which tells you the cost of running the day-to-day operations of a given business. Start your investment journey With 2 free stocks. Open an account and get a free stock! Deposit and get another free stock! https://act.webull.com/vt/fi4LwXKG6vF8/5j2/inviteUs/main Join me on Yotta using my username DAVID443 and we’ll both get a Loot Box with up to $100 and 1 MILLION tickets into daily number drawings with prizes up to $1m. Yotta is an app featured in Bloomberg and Forbes with over 700k users. https://join.withyotta.com/DAVID443 I'm using ReceiptPal to earn great rewards for my receipts and thought you might like to do the same. Use my link to download the app and start earning rewards! You'll get me bonus points too! https://app.adjust.com/oqlq9t9?label=DRTEZ938 [4P0B6eBGxuk] |
| Category | Education |
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