The initials OBERAC stand for: ‘operating balance excluding revaluations and accounting changes’.
In throughput accounting, the cost accounting aspect of Theory of Constraints (TOC), operating expense is the money spent turning inventory into throughput. In TOC, operating expense is limited to costs that vary strictly with the quantity produced, like raw materials and purchased components. Everything else is a fixed cost, including labour unless there is a regular and significant chance that workers will not work a full-time week when they report on its first day.
Owners equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a company’s assets and liabilities — that is, the value that accrues to the owners (sole proprieter, partners, or shareholders). In a corporation, it is called shareholders’ equity. In bankruptcy, ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.