Which of the following are considered operating expenses?

Operating expenses are the costs that a business incurs through its normal business operations. When looking at the choices provided, it's important to identify which of these primarily reflect the ongoing costs of managing and running a property or business.

The selected option mentions fixed expenses, variable expenses, and a reserve for replacements. Fixed expenses refer to costs that do not change with the level of goods or services produced, such as rent or salaries. Variable expenses fluctuate with production levels, like materials and labor costs. A reserve for replacements is an allocated amount for future capital expenditures, ensuring funds are available for necessary repairs or replacements of assets. All these components are essential in calculating the total operating costs because they represent regular and necessary expenditures to maintain operations.

In contrast, the other options include components that do not solely represent operating expenses or mix them with other financial metrics. Option C, for instance, includes debt service, which is a financing cost rather than an operating expense. While utility bills and insurance from option D can indeed be considered operating costs, depreciation is an accounting measure that allocates the cost of an asset over its useful life, and maintenance varies widely and may not be included if defined in a certain context.

Thus, option B accurately reflects the essence of what constitutes operating expenses in