Question

question 13

recurring monthly bills for supplies and utilities are examples of operating expenses

Explanation:

🆕 New Concept Discovered: Operating Expenses (OPEX)
Costs to keep a business running daily.

Step 1: Define Operating Expenses

Operating expenses (OPEX) are the ongoing, day-to-day costs required to run a business's core operations. These are short-term expenses that are fully expensed in the period they are incurred, rather than capitalized over time.

Step 2: Analyze the Given Examples

• Supplies: Consumable items used in daily business activities (e.g., office paper, cleaning products).
• Utilities: Ongoing monthly services required to keep the business location functional (e.g., electricity, water, internet).

Because these bills are recurring, short-term, and directly support the daily maintenance of the business, they are classified as operating expenses.

Answer:

operating expenses