Operating Expense refers to the costs a business incurs during its normal operations. These expenses include things like salaries, rent, utilities, and office supplies. Essentially, they are the day-to-day costs that keep a company running and are necessary for producing goods or services. Managing operating expenses is crucial for a company's profitability. By keeping these costs in check, businesses can improve their bottom line and invest more in growth opportunities. Understanding and analyzing operating expenses helps managers make informed decisions about budgeting and resource allocation, ultimately leading to a more efficient operation.