Operating expenses include cost of goods sold?

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Are operating expenses something like a broader category that includes the cost of goods sold or should they be reported as separate line items?

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score 0 · Answer 1 · 2012-12-02T18:36:29+00:00

Operating expenses and cost of goods sold are two distinct things. Operating expenses does not include the cost of goods sold. If you get an income statement, you will see the following:

Revenue
Less:Cost of Sales br>
Gross Profit

Less: Operating Expenses

Net Profit