Classification of expense - Service industries

5.1 - Operating expenses

Operating expenses include:
- Salaries, wages and benefits
- Commissions paid to non-employees
- Professional and business services fees
- Subcontract expenses
- Charges for services provided by head office
- Cost of goods sold
- Office supplies
- Rental and leasing
- Repair and maintenance
- Insurance
- Advertising, marketing and promotions
- Travel, meals and entertainment
- Utilities and telecommunications expenses
- Property and business taxes, licences and permits
- Royalties, rights, licensing and franchise fees
- Delivery, warehousing, postage and courier
- Financial services fees
- Amortization and depreciation of tangible and intangible assets
- Bad debts

They exclude:
- write-offs
- capital losses
- extraordinary losses
- interest on borrowing
- other non-recurring items
- charitable and political expenses
- research and development expenses
- education and training expenses
- recruiting expenses

5.2 - Non-operating expenses

All other non-operating expenses include :
- interest on borrowing
- charitable and political expenses
- research and development expenses
- education and training expenses
- recruiting expenses