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okay guys brad flynn here and were going to continue talking about the different names for the different parts of an income statement they all mean the same thing it gets a bit confusing sometimes so now were going to look at the operating expenses so this is the line that comes below the gross profit gross profit of course is income minus cost of sales now were going to look at the terms that are used for an operating expense remember your profit and loss is your report card how you played the game so first thing a shortened version of operating expenses you will sometimes see this called opex operating expenses so opex nice short simple probably one of my preferred terms because i dont like to speak too much i use short words next thing we will hear it called sometimes is your overhead and the best way to think about this its a bit like your rent okay its whats going to keep the roof overhead for you so that youre not out in the open the last term i want to talk about that w