Which of the following are considered examples of operating expenses?

Operating expenses refer to the costs involved in the regular functioning of a business, specifically those that are necessary to maintain the day-to-day operations. Utilities and payroll are fundamental components of operating expenses as they directly relate to the expenditures needed to keep the premises running and staff employed.

Utilities encompass costs such as electricity, water, and heating, which are essential for the business operations of any facility. Payroll includes salaries and wages for employees who contribute to the daily operations of the organization. These expenditures are recurring and directly tied to the functionality of the business, making them key examples of operating expenses.

In contrast, marketing and advertising are often considered part of selling expenses and are aimed at promoting the business rather than maintaining its operations. Research and development costs are associated with creating new products or improving existing ones and typically fall under capital expenditures, not routine operating expenses. Maintenance and upgrades may involve certain periodic operational expenditures; however, they can also be capitalized depending on their nature and impact on the asset's value, thus making them less consistent as regular operating costs.

Therefore, utilities and payroll clearly illustrate typical operating expenses essential for keeping the business operational on a daily basis.