are facility costs included in operating expenses
Several types of expenses affect profits for a business including equipment costs, inventory and facilities costs. There are two main categories for all business expenses: operating expenses and overhead expenses. The costs that fall into each category depend on the nature of the business. Essentially, operating expenses are directly related to production, while overhead expenses are the costs to run the business. Operating expenses include materials, labor and machinery used to make a product or deliver a service. For example, a soda bottler has the cost of aluminum for cans, machinery costs and labor costs.