Question

A service business may have some additional operating expenses like rent, insurance, commissions, and so on. Most of these expenses are
incurred on a ___
basis.

Answer 1

An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Operating costs or operational costs are the expenses that are related to the operation of a business, or the operation of a device, component, piece of equipment, or facility. They are the cost of resources used by an organization just to maintain its existence.

An operating expense is an ongoing cost of running a product, business, or system. ... For larger businesses, operations may also include the cost of workers and facility expenses such as rent and utilities. On an income statement, operating expenses include accounting expenses.

Operating expenses are the expenses your business incurs on a daily basis. Typical operating expenses include rent, payroll, utilities, printing, postage, and property taxes. Many, if not all, of these expense categories, have a separate expense account in the general ledger.

Operating expenses are not directly related to the production of products or services, but instead reflect what it truly costs to open your doors each day.

Answer 2

Answer:

Credit

Explanation:

An incurred expense is a cost that a business incurs when it purchases goods or services on credit. The purchase may be made either through a credit card. Instead, by using a credit or a billing arrangement with the seller of the goods.