Explain the difference between operating expenses and non$-$operating expenses in accounting. Operating expenses are costs incurred in the day$-$to$-$day operations of a business, such as salaries, rent, utilities, and supplies. These expenses are directly related to generating revenue and are essential for running the core business activities. Non$-$operating expenses, on the other hand, are costs that are not directly tied to the primary business operations, such as interest expenses, losses on investments, or one$-$time charges. Distinguishing between operating and non$-$operating expenses helps in analyzing a company's operational efficiency and financial performance accurately.