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Gross operating expense is the cost something needs to be operated without tax or other contributions being deducted.

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12y ago
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6mo ago

Gross operating expense is the total amount of money spent by a company to operate its business, including costs such as salaries, rent, utilities, supplies, and other day-to-day expenses. It does not include taxes or interest expenses.

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Q: What is gross operating expense?
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What is gross expenses?

Gross operating expense is the cost something needs to be operated without tax or other contributions being deducted.


Is loan interest is operating expense or non operating expenses?

Non-Operating Expense


Restructuring charges be classified as an operating expense or as a nonoperating expense?

Should restructuring charges be classified as an operating expense or as a nonoperating expense?


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What is the difference between gross expense ratio and net expense ratio?

Net Expense RatioThe net expense ratio is the expense ratio of the fund after applicable expense waivers or reimbursements. This is the actual expense ratio that investors paid during the fund?s most recent fiscal year. Gross Expense RatioThe gross expense ratio is the fund's total annual operating expense ratio. It is gross of any fee waivers or expense reimbursements. Why are these fees waived? In the case of funds with smaller assets, the gross total expense ratios may be much higher than net total expense ratios. This is true because certain fixed costs, such as legal and custodian fees, have a disproportionate impact on the expense ratio of a smaller fund in comparison to a larger fund. Mutual fund families also may choose to waiver fees to make the pricing of a fund more competitive. What types of expenses are included in the gross and net expense ratios? There is no difference in the types of expenses within a gross or net expense ratio. The net expense ratio is simply the gross expense ratio of a fund less any waivers or reimbursements. What caused the need for reporting both the gross expense ratio? Were there abuses of some sort going on? While there are no specific abuses of which we are aware, there is the potential that a fund family can discontinue a fee waiver without a shareholder vote. The NASD thought it was important that investors be aware of the potential gross expense ratio, in addition to the actual net expense ratio that investors paid. Ultimately this will not affect your investments or cause any reason for change. This is more or less a new reporting requirement that is put in place to provide as much objective information regarding a mutual fund as possible. You will still primarily be concerned with the net expense ratio since that is what will determine your real return, but you will begin to notice this additional number being reported on investment materials and online.


Is interest expense listed on the income statement as an operating expense?

yes