Business of Radiology 101
Income Statement: Operating Expenses
Operating Expenses encompasses the day-to-day cost of running a business. Operating Expenses keep the infrastructure of the business functioning. These costs are commonly known as the 'Overhead' or Overhead Expense. Such expenses include salaries, monthly rent, utility bills, and maintenance fees. Compared to cost of sales, operating expenses are considered indirect costs of running the business. Gross Profit - Op. Expenses = Op. Profit or EBIDAT*
The operating profit (or EBIDAT) is the difference after subtracting the operating expenses from the gross profit, which reveals the profitability of the operating business.