Which of the following accurately defines operating expenses?

Operating expenses are costs that are incurred during the regular course of business operations. This includes expenses related to the day-to-day functioning of the company, such as rent, utilities, salaries, and other administrative expenses. These costs are essential for maintaining the basic activities and services of a business but do not directly contribute to the production of goods or services.

Choosing the option that refers to costs associated with core operations captures the essence of what operating expenses are, as it emphasizes their role in supporting the overall functionality of the business without being directly tied to producing products. Understanding this distinction is important for financial analysis and for assessing the efficiency and financial health of a business.

The other options address different categories of costs. Direct production costs focus on expenses strictly related to manufacturing goods, purchasing inventory involves costs for acquiring stock that will be sold, and one-time capital costs relate to significant investments in fixed assets rather than ongoing operational expenses. Therefore, these options do not represent the recurring nature of operating expenses as accurately as the chosen response.