Summary
Operating expenses (OpEx) are ongoing costs for running a product, business, or system
1
, such as rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.
2
They are often cheaper and more flexible to incur than capital expenditures (CapEx)
3
, which are major purchases used over the long term. OpEx is often deducted from income for tax purposes, while CapEx is not.
3
According to
Summary
Capital expenditures (CapEx) and operating expenses (OpEx) are two of the most common categories of expenses that companies have to pay in order to continue running their businesses. Capital expenditures are major purchases that a company makes, which are used over the long term, while OpEx are day-to-day expenses that a company incurs to keep its business running. Capital expenditures are not deducted from income for tax purposes, but OpEx is often cheaper and more flexible to incur.
CapEx vs. OpEx: What’s the Difference?
investopedia.com
Summary
An operating expense , operating expenditure , operational expense , operational expenditure or opex is an ongoing cost for running a product, business, or system . Its counterpart, a capital expenditure (capex), is the cost of developing or providing non-consumable parts for the product or system
Operating expense - Wikipedia
wikipedia.org
Summary
An operating expense is an expense that a business incurs through its normal business operations. Often abbreviated as OpEx, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs , and funds allocated for research and development.
Operating Expense Definition and How It Compares to Capital Expenses
investopedia.com
Understand what is CapEx and OpEx and the difference. Learn how to get control over CapEx spendings and reduce the expenditure approval cycle time.
What is CapEx and OpEx | Comindware Blog
comindware.com
