Operating Expenses (OpEx)
Definition
The ongoing costs of running the business that are not part of COGS, like salaries, rent, software, marketing and professional fees.
Want a deeper explanation?
Grouping OpEx into variable selling costs and fixed overhead makes it far more useful than one long list. That split is what shows contribution margin and break-even.
Review it as a percentage of sales each month. Watch for: OpEx growing faster than gross profit, which squeezes operating income even in a strong sales year.
Example
A brand's monthly OpEx: $45,000 payroll, $8,000 rent, $5,000 software, $30,000 ads and $4,000 professional fees, totaling $92,000.