How are operating expenses (OpEx) different from capital expenses (CapEx)?

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.

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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.

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B
2% (1)
C
94% (44)
D
4% (2)

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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#OpEx#CapEx#financial terms#business models

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