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820-605 · Question #99
820-605 Question #99: Real Exam Question with Answer & Explanation
The correct answer is C: OpEx is expenses for the day-to-day operation of a business, while CapEx is investments in. Operating expenses (OpEx) are the costs for the day-to-day operation of a business, such as rent, utilities, and payroll. Capital expenses (CapEx), on the other hand, are investments in assets that will benefit the business over a longer period, such as equipment or property2.
Question
How are operating expenses (OpEx) different from capital expenses (CapEx)?
Options
- AOpEx are investments a company pays for up-front, while CapEx are the on-going costs to run
- BOpEx includes software licenses with contracts that have user rights in perpetuity, while
- COpEx is expenses for the day-to-day operation of a business, while CapEx is investments in
- DOpEx has depreciation, while there is no deprecation with CapEx.
Explanation
Operating expenses (OpEx) are the costs for the day-to-day operation of a business, such as rent, utilities, and payroll. Capital expenses (CapEx), on the other hand, are investments in assets that will benefit the business over a longer period, such as equipment or property2.
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