Definition of Non-operating expense:
Non-operating expense, like its name implies, is an accounting term used to describe expenses that occur outside of a company's day-to-day activities. These types of expenses include monthly charges like interest payments on debt but can also include one-off or unusual costs. For example, a company may categorize any costs incurred from restructuring, reorganizing, costs from currency exchange, or charges on obsolete inventory as non-operating expenses.
Expense incurred in performance of activities not directly related to the main business of a firm, such as for insurance or maintenance of the assets.
A non-operating expense is a business expense unrelated to the core operations. The most common types of non-operating expenses are interest charges and losses on the disposition of assets. Accountants sometimes remove non-operating expenses and non-operating revenues to examine the performance of the business, ignoring effects of financing and other irrelevant issues.
How to use Non-operating expense in a sentence?
- A non-operating expense is an expense incurred from activities unrelated to core operations.
- Non-operating expenses are deducted from operating profits and accounted for at the bottom of a company's income statement.
- Examples of non-operating expenses include interest payments or costs from currency exchanges.
Meaning of Non-operating expense & Non-operating expense Definition