What are OPEX and CAPEX and how do they differ?
Operating expenses are the funds a business uses to run its daily operations. These include regular payments it makes, such as once a month or once a year. In English, the term is Operating Expense, or OPEX.
Depending on the specifics of the business, the list of such expenses may vary. As a rule, they include:
Employee salaries
Social benefits
Rent of offices or industrial premises
Costs of repairing or maintaining property
Security and improvement of the territory
Public utilities
Raw materials
Employee training
Software licenses or patents
Advertising expenses
OPEX does not include income tax, VAT or penalties on them. But these indicators directly depend on the size of OPEX: if operating costs have increased, net profit has decreased. This means that the amount of income tax has also changed.
. Fixed expenses that do not depend on the volume of sales or qatar telegram data production, such as rent, can be classified as fixed. Variable expenses include, for example, logistics or advertising costs. These amounts can change depending on the season or the number of customers.
There are also capital expenditures of the organization (Capital Expenditure, or CAPEX) - expenses that are aimed at purchasing or improving the fixed assets of the enterprise. These include all non-monetary assets: buildings, land, computers or machines.
CAPEX is the cost of purchasing real estate, cars, special equipment or equipment for production or office. These purchases are usually one-time - they are long-term investments and increase the company's fixed assets. At the same time, if the purchased property requires repairs in the future, the costs for it will be attributed to OPEX.
Every business has OPEX, and they don
Types of enterprise expenses are divided into fixed and variable
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