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Operating Expense

Operating expenses refer to the costs that a business must cover in order to keep its operations running smoothly. These expenses include the cost of raw materials, wages for employees, and any other expenditures that are necessary for the day-to-day functioning of the company. As a knowledgeable professor in the field of finance, it is important to understand the significance of operating expenses in a company's financial health. By managing and reducing these expenses, a business can improve its profitability and ultimately achieve success in the competitive market.

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