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these other expenses that are not considered ingredients these expenses are called operating expenses or opex for short thats opex so when people at your company talk about overhead this is part of the income statement that theyre referring to with operating expenses were answering the question how much of the company spend running the business some companies put all the operating expenses into one line item but because apple has a lot of research and development they choose to itemize and break out that line separately here and sometimes this is abbreviated as r d research and development for apple in 2018 is 14 billion 236 million dollars this includes all the cost and spending for things like designing and improving existing products or inventing new products and all these costs are completely independent of how much product is sold so salaries of employees working on new products is an example of a research and development expense apple spent 16 billion 705 million on selling ge