An acronym for Operating Expenses, OpEx refers to the ongoing costs associated with the daily operations of business products, services and/or systems.
Operational expenditures stand in contrast to capital expenditures, or CapEx, which are the costs associated with acquiring, developing or upgrading physical assets such as hardware systems or intangible assets like patents and other intellectual property.
OpEx from an Accounting Perspective
From an accounting perspective, OpEx or operational expenditures refer to business costs needed to ensure the daily operations of the business, such as wages and other administrative costs, utilities and maintenance.
OpEx costs are fully deducted on income statements in a given accounting period, whereas CapEx costs need to be capitalized (depreciated or amortized) over the expected life of the asset.
Stay up to date on the latest developments in Internet terminology with a free weekly newsletter from Webopedia. Join to subscribe now.
This chat guide lists more than 1,460 text message and online chat abbreviations to help you translate today's texting lingo. Read More »SEO Dictionary
From keyword analysis to backlinks and Google search engine algorithm updates, our search engine optimization glossary lists 85 SEO terms you need... Read More »Slideshow: History of Microsoft Operating Systems
Microsoft Windows is a family of operating systems for personal computers. In this article we look at the history of Microsoft operating... Read More »
Computer architecture provides an introduction to system design basics for most computer science students. Read More »Network Fundamentals Study Guide
Networking fundamentals teaches the building blocks of modern network design. Learn different types of networks, concepts, architecture and... Read More »Java Basics, Part 1
Java is a high-level programming language. This guide describes the basics of Java, providing an overview of syntax, variables, data types and... Read More »