why interest & taxes expense is not included in operating expense???


1 Answer(s)


Operating Expenses only include items that are directly related to manufacturing and selling a company's product - factory costs, rent, salary, advertising etc.

Tax is a government payment that has nothing to do with the core business of the company.

Interest again is a money you have to pay on a loan and again the interest expense has no direct relation to the product or sales of a company.