OPEX
Day-to-day spending
OPEX is a business acronym for operating expenses—the ongoing costs of running a company, like salaries, rent, and utilities.
It contrasts with CAPEX (capital expenditure), which covers major purchases like equipment or buildings.
The CFO wants to shift more spending from CAPEX to OPEX.
The distinction matters for budgeting and tax treatment.
Payment for temporary use
- utilitiesEssential infrastructure services
- salariesFixed regular payments for work
- maintenancePreserving working condition
- suppliesResources for a task
insurance premiums · administrative costs · payroll · travel costs · subscription fees · licensing fees · cost reduction · outsourcing
Routine business costs
- budget lineDesignated spending category
- financial planningOrganizing future monetary goals
- overheadLocated directly above
- cost centerUnit tracked by expenses
budget cycle · cost control · expense tracking · fiscal year · spending plan · cost structure · budget variance
Spending on fixed assets
- capital expenditureSpending on fixed assets
- depreciationAsset value reduction over time
- amortizationGradual debt reduction schedule
- balance sheetAssets-liabilities-equity report
infrastructure spending · capital budget · accounting standards
Periodic profit-loss report
- profit and lossNet financial results
- cost accountingRecording and analyzing operational expenses
- financial reportingDocumenting business performance formally
- deductible expensesCosts subtracted from taxable income
rent
Payment for temporary use
- utilitiesEssential infrastructure services
- salariesFixed regular payments for work
- maintenancePreserving working condition
supplies · insurance premiums · administrative costs · payroll · travel costs · subscription fees · licensing fees · cost reduction · outsourcing · service contracts
operating expenses
Routine business costs
- budget lineDesignated spending category
- financial planningOrganizing future monetary goals
- overheadLocated directly above
cost center · budget cycle · cost control · expense tracking · fiscal year · spending plan · cost structure · budget variance
CAPEX
Spending on fixed assets
- capital expenditureSpending on fixed assets
- depreciationAsset value reduction over time
- amortizationGradual debt reduction schedule
balance sheet · infrastructure spending · capital budget · accounting standards
income statement
Periodic profit-loss report
- profit and lossNet financial results
- cost accountingRecording and analyzing operational expenses
- financial reportingDocumenting business performance formally
deductible expenses · write-off · bookkeeping · net income · cost basis
OPEXCAPEX
Spending on fixed assets
capital expenditure · capital investment · infrastructure investment · long-term investment · property investment
- soap operaSerialized melodramatic broadcast drama
- rock operasNarrative albums performed theatrically
- base of operationsCentral location for activities
- opera houseVenue for staged singing
- train operatorsThose driving locomotives
- cleanup operationsSystematic removal of debris
operate, operation, operations, operational, operationally, operative, operatives, operator, operators