What is typically included under operating expenses?

Operating expenses are the costs associated with the day-to-day functioning of a business. They typically include expenses necessary to maintain the company's operations and generate revenue, but do not encompass costs that are related to financing, investing, or one-time exceptional expenses.

Monthly operational utilities are considered operating expenses because they are regular, recurring costs essential for running the business. This can include expenses for electricity, water, heating, and other necessary services that support daily operations.

In contrast, marketing expenses can vary widely and while they can be seen as necessary for driving sales, they may not be included in every definition of operating expenses. Interest payments pertain to financing and are classified separately, while employee bonuses are often considered part of compensation expenses rather than routine operational costs. Therefore, the inclusion of monthly operational utilities aligns with the fundamental definition of operating expenses.