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Because operating expenses can be a substantial drain on company resources, controlling operating expenses is an important aspect of managing a financially healthy business. Formula Operating ... In TOC, operating expense is limited to costs that vary strictly with the quantity produced, like raw materials and purchased components. Everything else is a fixed cost , including labour (unless there is a regular and significant chance that workers will not work a full-time week when they report on their first day). Before incorporation and commencement of business, company and the promoters of the company may incurred so many types of expenses like statuary fees and company logo designing, in some cases rent for the office premises during the time of incorpo... A balance sheet is a statement of the financial position of the firm on a given date, including its asset holdings, liabilities, and equity. True Which of the following represents an attempt to measure the net results of the firm's operations (revenues versus expenses) over a given time period? No it is not an operating expense, accumulated depreciation is a contra asset account on the balance sheet. Accumulated depreciation is netted against your fixed assets on the face of the financial statements to result in net fixed assets. Depreciation (expense) would be classified as an operating expense. Mar 19, 2018 · However, the incurrence of an expense also impacts the balance sheet, which is where the ending balances of all classes of assets, liabilities, and equity are reported. The impact of expenses on the balance sheet varies, depending upon the nature of the original expense transaction. The possible variations are: Accounts payable.