Cost metric
Operating expenses
Expenses such as rent, salaries and software, spread over the days they cover.
Expenses such as rent, salaries and software, spread over the days they cover.
Operating expenses = Σ expense amount for each day in the period
Example
A $3,000 monthly rent in a 30-day month adds $100 to each day. A 7-day period carries $700.
How it is calculated
- Monthly, quarterly and annual expenses are spread evenly across the days of each month, quarter or year. One-time expenses land on their start date.
- Expenses reduce net profit only. They do not change contribution profit.
Reading it
- Format: Amount in your reporting currency.
- Lower is better (an increase is shown in red).
Where it appears
- Overview and Dashboards — add it from the metric picker (Costs group).
Related
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